Mortgage Protection Insurance is available as both level term and decreasing cover. To best understand what’s right for you, we recommend consulting a Cover Your Life financial advisor.

A mortgage protection policy with decreasing cover is pegged to the value of your mortgage. As your mortgage decreases over time, so will your insurance cover.

So, for instance; if you have had a £200,000 mortgage when you took the policy out, that’s how much the insurance would pay out. If it was down to £120,000 by the time the policy holder died, £120,000 is the amount that the insurer would pay out. This type of cover ensures that no matter what, your family won’t need to worry about paying off the mortgage without you.

A mortgage protection policy with level-term cover covers the cost of the mortgage. However, unlike decreasing cover, level-term will pay out the price of your mortgage when you first took the policy out.

So, for the level-term scenerio, imagine that your mortgage was £200,000 when you took out the policy. But by the time you passed away, the mortgage had decreased to £120,000, the insurer would still payout the origianal £200,000 figure. This means that your mortgage is covered and your family have a little extra support to get by without you.