Why is Mortgage Life Insurance cheaper than standard Life Insurance?

With Mortgage Life Insurance, the insured sum decreases over time in line with the outstanding capital on a repayment mortgage - and Mortgage Life Insurance is only designed to cover a repayment mortgage.

As the sum insured decreases, this reduces the risk to the insurance company. Consequently, they can afford to cut the cost of Mortgage Life Insurance policies. In fact Mortgage Life Insurance is the cheapest form of life insurance you'll ever find. For this reason, Mortgage Life Insurance is also fnown as "Low Cost Life Insurance".