Life Cover Mortgage Protection
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Nothing can replace a loved one. Life cover can help to ease money worries and prevent financial hardship by providing a cash lump which can be used for a purposes of your choice. There are two types of cover: one which applies to capital and interest mortgages and the other can be used for interest-only mortgages:
Mortgage Protection
This is otherwise known as decreasing cover and is linked to the repayment of a capital and interest repayment mortgage. Here's how it works:
- the sum that you choose to assure should reflect your outstanding mortgage balance and the term should match the number of years left on your mortgage.
- as the mortgage balance reduces over time, the sum assured of the life policy reduces in line which generally helps to keep the cost of the cover relatively low, compared to term assurance. If the policy holder were to die or be diagnosed with a terminal illness during the cover term, a cash sum would be paid by the life company.
You can enjoy flexibility with mortgage protection policies. By keeping in line with the changes you go through in life, such as remortgaging or moving house, the policy allows you to keep up to date with your cover.
Term Assurance
This is otherwise known as level life cover, and unlike mortgage life assurance, the sum assured on a term assurance policy will remain the same throughout the life of the plan. The policy is ideal for:
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protection for an interest-only mortgage where the balance owed to the lender remains the same until the end of the term. If the policy holder were to die or be diagnosed with a terminal illness during the cover term, a cash sum would be paid by the life company.
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providing additional benefit to your loved ones in the form of a lump sum which could be invested to provide an income. Affinity can help you decide on the appropriate level of cover for your family designed to fit within your budget.
It is easy to rush through a mortgage application and/or property purchase without taking the time to ensure that you and your family's insurance needs are met and their futures provided for in the unthinkable event of a death. At Affinity we feel we have a responsibility to you as our client to discuss your protection options to suit your needs and the ultimate choice is always down to you.
If you would like to talk to us about your requirements please complete the following enquiry form or call our freephone number.
