What kind of insurance do I need if my mortgage is Interest Only?
You should take out Life Insurance in association with
your mortgage.
Normal Life Insurance will provide the type of cover you
need to protect an Interest Only Mortgage. This is basically
a mortgage where the monthly premium pays just the interest and the capital
sum is paid off at the end. Because you repay the whole of the capital
amount at the end of the mortgage your Life Insurance needs to cover the
whole amount borrowed for the full term of the policy. This is also known
as level cover life insurance.
A Repayment Mortgage is different. Mortgage
Life Insurance is designed to provide the kind of decreasing
cover required in this case.
Other relevant questions…
What
kind of insurance do I need if I have a Repayment Mortgage?
How does level cover
insurance work?
Is Life Insurance for me?
What else do I need to know about Life Insurance?
How do I get a Life Insurance Quote?
How do I choose the right policy for me?
What if I need cover to be arranged quickly?
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How are premiums calculated?
What if I have to make a claim?
Do I need Mortgage Life Insurance instead?
Should I consider Critical Illness cover?
What other sorts of Insurance should I think about?
How do I make a complaint?
What do I need to know about the law and Life Insurance?
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