How does mortgage life insurance work?
As you would have assumed in the name, the objective is to cover the outstanding balance of your mortgage should the worst happen. Upon each repayment on your mortgage, your debt decreases. This in turn will reduce the amount outstanding so the amount of insurance cover that you will actually need to cover the rest of your mortgage also decreases.
This life insurance solution is specifically tailored for these circumstances, meaning that your cover decreases over time to remain in line with your outstanding mortgage cost.
What is the best mortgage life insurance cover?
Life insurance is a more complex insurance than most as it looks in great detail at your health and age etc. The best mortgage life insurance cover will therefore depend on you and your individual circumstances. For example, you may be slightly older or have an existing medical condition that increases the cost of your policy. Whereas a younger person with no medical problems will get the same cover but at a cheaper cost.