What's the difference between life insurance and mortgage life insurance?
Both life insurance and mortgage life insurance are designed to pay out a cash sum if you die within the length of your policy. Both types of insurance can be used to help your loved ones pay off the mortgage.
The main difference between life insurance and mortgage life insurance is that they are designed with different protection purposes in mind. Some people want a policy that will help protect their family financially if they were to die during the policy term. Others may have a need for a policy that could help their family pay towards the mortgage, should the worst happen.
Everyone’s circumstances are different, so you should take the time to consider the different options available. We’ve outlined the policies we offer below, along with what they are designed to help you protect.
Life insurance could pay out a cash sum on your death during the length of the policy. It could be used to help protect your family’s lifestyle and everyday living expenses or to help pay towards an interest only mortgage. The premiums and the amount of cover you choose remain the same, unless you alter your policy.
Decreasing Life insurance is designed to help protect a repayment mortgage, so the amount of cover reduces roughly in line with the way a repayment mortgage decreases.
Just remember that life insurance is not a savings or investment product and has no cash value unless a valid claim is made.
What type of policy do I need?
When deciding on what type of policy you may need, it could help to think about who and what you are trying to protect. If you have a partner, children or someone who relies on you for income, you could consider taking out a policy to help financially protect them.
If your partner or family would struggle to keep up mortgage payments if you were no longer around, you may want to consider protecting your mortgage.
Regardless of what type of policy you chose, taking out a policy can help provide financial security to your loved ones should the worst happen.