Mortgage protection life insurance (decreasing term life insurance) pays out an amount of money (sum insured) on a claim that reduces during the term of the policy.
Not all mortgage protection life insurance and critical illness insurance plans pay the same amount on claim. This is because each insurance company uses different ways to work out how the life cover should fall over the term.
There are basically two ways that are in common use.
The price (premium) you pay will be decided by the insurer before you start your policy, and for mortgage protection life insurance this is usually fixed until the policy ends.
You may find that the price that is decided by the insurer can sometimes differ to what you are quoted, this could be because:
- the insurer needs to increase the price due to something you’ve mentioned in your application
- you may have passed a full, half or quarter birthday
Your mortgage protection life insurance will pay out if you were to die before the end of your policy, providing you are still paying the monthly premiums.
This type of life insurance can be used to pay off the outstanding balance of a repayment mortgage if you die before the policy ends.
CALL US 028 877 2661 or call into office for Instant Quote