UNDERSTANDING LIFE INSURANCE COVER
Mortgage Protection, Level Term will give you the same amount of cover throughout the life of the policy and pay out that amount if you make a claim.
Mortgage Protection, Decreasing Term will decrease over the term, usually to match your decreasing mortgage amount, and pay out the current amount when a claim is made.
Both of which are designed to pay out a lump sum if you die during the policy term. The amount of life cover selected will either remain level throughout your selected plan term or decrease in line with the mortgage. If you wish to, you can request that benefits increase in line with inflation.
Whole of Life
Whole of Life Assurance is used to cover a liability that will arise on your eventual death, morbid we know, but good to have. Typically, this could be for one of the following reasons:
