What’s the difference between Mortgage Life Insurance and normal Life Insurance?

Mortgage Life Insurance is a special type of policy designed specifically for people with REPAYMENT mortgages.
Normal Life Insurance will pay out a fixed sum if you die.
Mortgage Life Insurance just repays the remainder of your mortgage, so it is cheaper than normal Life Insurance.

As you know, if you have a repayment mortgage, the capital you owe your mortgage provider decreases each month because part of the monthly payment pays off the sum you initially borrowed. The purpose of a Mortgage Life Insurance Policy is to cover you for the amount of capital you owe. This means that the amount of insurance cover you need decreases in line with your outstanding capital. The Insurance Company can afford to charge less in comparison with a policy where the sum insured remains constant - as is the case with normal Life Insurance.

Please note : The information contained within the FAQ section has been written by Mortgage Protected Online

Related questions:

What is Mortgage Life Insurance?

Why would I want Mortgage Life Insurance?

Should I consider normal Life Insurance to cover my mortgage?

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