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Welcome to a new part of the Life Cover Search site.The News page will provide useful information for site users and will continually update with relevant news stories and articles related to Life Insurance.So please check back on regular basis for informative articles that will keep you up to date with the ever changing world of life insurance and financial services.
Today we look at Mortgage Decreasing Term Assurance and explain what this type of life cover is and its uses.Mortgage decreasing term assurance is a type of life assurance that is used primarily to protect Repayment or Capital and Interest mortgages in the UK.For instance if you have a £100000 mortgage over a 25 year term,you might be advised to consider £100000 term assurance over 25 years on a decreasing basis.So in lay man terms,you are insuring against death during the term of the mortgage i.e. if you die during the term of the life policy which is the same term as the mortgage,then the mortgage debt can be paid off from the decreasing term policy.
Lets look at the decreasing element of the Mortgage Decreasing Term assurance,most insurance companies will decrease the life cover in line with the mortgage debt.So if you have a £100000 repayment mortgage and after paying it for 5 years you owe approximately £95000,the the mortgage decreasing term assurance should have decreased to the same level of the mortgage debt i.e. £95000 and should be sufficient to pay off the mortgage debt.You should always check that any mortgage decreasing term assurance is set up correctly to decrease at an appropriate level.Once you have received a quote from Life Cover Search ask the adviser if the level of cover is set up correctly to decrease at a level to suit you mortgage and changes in interest rates during mortgage term.
Mortgage Decresing Term Assurance is really only suitable if you have a Repaymnet mortgage and is not really suitable for interest only mortgages or investment backed mortgages as these types of mortgages do not decrease as mortgage amount remains level through out mortgage term unles you make capital payment to reduce balance.
Finally do not be confused between the decreasing element of life cover and the premium you pay for decreasing mortgage term assurance,as it is only the sum assured that decreases in line with the mortgage and not the premium which if guaranteed remains the same through out the policy term.This type of cover is usually cheaper to purchase than level term assurance as the insurance company is reducing its risk as the life cover decreases.
Get your free,whole of market decreasing term assurance quote now,simply complete the quote search form to the right.The form takes no more than a minute or two to complete and will give access to the cheapest quote on the market.
Finally life insurance does not need to be all doom and gloom,here is a little light hearted video about mortgage term assurance,hope you enjoy.
