Mortgage Life Insurance UK
How mortgage life insurance works and what it will cost.
If you’ve got a repayment mortgage, then chances are you’ll need a special policy called a decreasing term life policy. Otherwise known as mortgage life insurance UK customers have a wide choice of cheap-as-chips products from as little as £8 per month per £100,000 insured.
For mortgage life insurance UK customers have a limited number of options but from a wide range of suppliers- which is fine because these products are cheap! Indeed, because this type of policy (technically called decreasing term insurance) is designed to cover something very specific, namely the outstanding balance on your mortgage which decreases as the term of the mortgage goes on, it pretty much comes in one plain vanilla flavour. Unlike many other types of life cover, you can pretty much buy on price alone. After all, you’re not protecting or investing in your family, you’re just doing a favour to your mortgage company!
We did say that this type of cover is price-sensitive, so as well as checking rates when you buy your mortgage and mortgage life insurance UK buyers should also regularly check rate throughout the term of the mortgage. Indeed on any given day several insurers will be offering special deals if you move your mortgage life cover to them. As a rule of thumb, a non-smoking office-worker in his early 30’s can expect to pick up £100,000 worth of basic decreasing term life cover across 25 years for somewhere around £8.00 per month.
There is one further caveat: if instead of a repayment mortgage, you have an interest-only mortgage, then a decreasing-tem policy isn’t right for you- indeed you have several more options based around standard term insurance; and you should seek the assistance of a financial adviser.
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