What if I have a Repayment Mortgage? Do I need Mortgage Life Insurance
instead?
Yes. You should take out Mortgage Life Insurance.
The great advantage of Mortgage Life Insurance
is that it is specially designed to cover a Repayment Mortgage. It provides
what is called decreasing cover.
Rather than being insured for a fixed amount, your cover
will steadily decrease as the years go by in line with the outstanding
sum outstanding on your mortgage. This makes the insurance much less expensive,
because as you get older, you are actually insured for less. However,
your mortgage will still be paid off if you die, which is the whole point
of this kind of insurance.
One extra point. All Mortgage Life Insurance we sell includes
terminal illness cover at no extra cost, so your mortgage
would also be paid off immediately if you become terminally ill.