Mortgage Protection

Mortgage Protection

What is Decreasing Term Life Insurance?

Decreasing term life insurance is a policy designed to help cover a repayment mortgage.

How does Decreasing Term Life Insurance help with a mortgage?

The sum assured decreases over time, aligning with the remaining mortgage balance.

Why is Decreasing Term Life Insurance usually more affordable?

Decreasing term life insurance is generally cheaper as the risk to the insurer decreases over time.

What happens to the sum assured in Decreasing Term Life Insurance?

The sum assured decreases throughout the policy term, resulting in a smaller payout for your loved ones later on.

What is the maximum sum assured in Decreasing Term Life Insurance?

The maximum sum assured can be up to £1,000,000.

What is the maximum term length for Decreasing Term Life Insurance?

The term length can be up to 40 years.

Why should I consider Decreasing Term Life Insurance for my mortgage?

It helps protect your mortgage by aligning the coverage with your outstanding balance.

What are the potential consequences of not having Decreasing Term Life Insurance for my mortgage?

Without coverage, your family may struggle to afford mortgage repayments, leading to downsizing or selling the home.

Talk to an expert Adviser, now!

Our highly experienced Advisers are ready to help you with either buying or remortgaging a home, protecting your property and lifestyle along with saving you time and effort, ensuring you have a competitive deal right for you.

How many UK homeowners rely on a mortgage?There are 10.97 million UK homeowners who rely on a mortgage.

What is the average UK mortgage debt?

The average UK mortgage debt is £142,755.

How many mortgage possession claims and orders are made in England and Wales?

Between October – December 2022, there were 34.4 mortgage possession claims and 27.0 mortgage possession orders made daily in England and Wales.

Is Decreasing Term Life Insurance suitable for an interest-only mortgage?

No, it is not suitable for covering an interest-only mortgage.

Is Decreasing Term Life Insurance suitable for rising funeral costs or fixed inheritance?

It may not be suitable for those purposes as the coverage decreases over time.

Who is Decreasing Term Life Insurance usually most suitable for?

It is typically suitable for covering the balance of a repayment mortgage or providing a declining inheritance.

Why is Decreasing Term Life Insurance generally cheaper than other forms of cover?

The risk to the insurer decreases over time, resulting in lower premiums.

What factors determine the cost of Decreasing Term Life Insurance premiums?

The cost is determined by factors such as the desired coverage, policy term, age, smoking status, health, and medical history.

What is the difference between Level Term and Decreasing Term Life Insurance?

Level term insurance maintains a fixed sum assured, while decreasing term insurance reduces the sum assured over time.

What happens if I pass away during a Decreasing Term Life Insurance policy?

Your loved ones can make a claim to receive the life insurance payout.

What is Joint Decreasing Term Life Insurance and how does it save money?

Joint decreasing term life insurance covers two individuals under one policy, usually saving around 25% compared to two separate policies.

What are the drawbacks and advantages of Joint Life Insurance policies?

Joint life insurance policies pay out only once (on the first death), which may leave the surviving partner uninsured. However, for mortgage coverage, it can be sufficient.

Is life insurance mandatory to get a mortgage?

No, life insurance is not a legal requirement, but it is generally recommended.

What could happen if I don’t have life insurance when purchasing a property with a mortgage?

Your family may be left responsible for repaying the mortgage, potentially leading to selling the home or facing financial difficulties.

Does remortgaging affect the suitability of Decreasing Term Life Insurance?

Remortgaging can impact the suitability of decreasing term cover due to changes in the amount owed and interest rate.

How can I ensure my Decreasing Term Life Insurance policy still meets my needs after remortgaging?

Contact your insurer to align your policy with the new mortgage terms and consider obtaining quotes from brokers to secure a better deal.

Can Decreasing Term Life Insurance be used for purposes other than covering a mortgage?

Yes, it can also help cover outstanding debts or provide coverage when a large payout is less essential over time.

What is the difference between covering your mortgage with Level Term Life Insurance and Decreasing Term Life Insurance?

Level term insurance maintains a fixed sum assured throughout the policy term, providing a consistent payout. In contrast, decreasing term insurance aligns the sum assured with your mortgage balance, gradually decreasing over time.

Is it possible to put Decreasing Term Life Insurance in a trust?

Yes, it is possible to write your decreasing term life insurance policy in trust.

What are the benefits of writing your life insurance in trust?

Writing your life insurance in trust can help minimize inheritance tax, expedite the claims process, and provide better control over the payout distribution.

Talk to an expert Adviser, now!

Our highly experienced Advisers are ready to help you with either buying or remortgaging a home, protecting your property and lifestyle along with saving you time and effort, ensuring you have a competitive deal right for you.

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