There are generally 2 main types of mortgages. They are:
Interest only. With this type of mortgage the outstanding balance remains approximately the same throughout the mortgage term. This can be protected by Mortgage Life Assurance, which provides an amount of life cover that remains the same throughout the term.
Capital and Interest. With this type of mortgage the outstanding balance usually reduces each year. This can be protected by Mortgage Decreasing Life Assurance, which provides an amount of life cover that will decrease over the policy term, approximately in-line with your mortgage balance.
If you choose the right cover to match your mortgage and you die during the policy term then the cover will pay out a lump-sum to help pay for the outstanding mortgage balance.
Benefits of Mortgage Life Assurance
- This cover will help provide for the repayment of your outstanding mortgage balance to help secure your family's home.
- You can arrange cover on a single or joint basis with your partner.
- You have the additional option to select Critical Illness Cover and/or Waiver of Premium.
This service is provided and administered by Legal & General Assurance Society Limited, who are authorised and regulated by the Financial Services Authority.