Do I have to get Mortgage Life Insurance?

Most mortgage lenders will insist that you protect your family with life insurance which would fully repay your mortgage if you were to die or become terminally ill. It certainly makes good sense!

If you have a repayment mortgage you will need Mortgage Life Insurance (which can also be sold under the descriptions; Decreasing Term Life Insurance and Low Cost Life Insurance.) With a repayment mortgage, the outstanding mortgage capital decreases each year so that by the end of the mortgage term, the sum owed reaches nil. This means that your life policy only needs to provide cover for a similarly reducing sum.

However, if you have an interest only mortgage, the outstanding mortgage capital remains constant as you only repay the monthly interest. In these circumstances you need the standard form of Life Insurance which is also called Level Term life Insurance.

Your mortgage provider will almost certainly try to sell you the life insurance you need. But do be aware that it will be much cheaper if you buy it through the internet and especially if you get a quotation through this web site! You’ll be amazed how much money you can save!