Do I Need Mortgage Life Insurance?

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Mortgage life insurance or decreasing term life insurance is an open way of ensuring that your outstanding mortgage repayment will be covered in the event of your death.

Getting a mortgage on a house is a significant commitment, whether you’re a first-time buyer or know your way around the real estate.

The last thing you’d want your family to think about when you die is how to fund your mortgage repayments and other debts, such as credit card debt and household bills, etc.

So don’t you think it’s worth knowing how much you might benefit from taking out mortgage life insurance?

Paying Off the Mortgage

Opting for level term insurance or decreasing term insurance to run alongside your mortgage repayments may provide you with mental freedom.

Decreasing Term Insurance

The idea behind ‘decreasing term insurance’ is that the payout reduces to match your mortgage as you get older, resulting in lower premiums as a consequence. This rather affordable life insurance option is a fixed term from the outset – and the purpose of it is to clear your mortgage when you die.

A ‘fixed term’ life insurance policy provides cover for a limited time only, the aim of it being to safeguard your income replacement needs. Premiums for decreasing term insurance are cheaper than that of level term insurance - as insurers know there’ll be a less of a payout since they pay out at the end of the term.

As there’s a gradual reduction in the cost of your mortgage as you continue to pay it, decreasing term insurance is a cheaper alternative to level term insurance, which is why people tend to use it to cover your mortgage.

Level Term Insurance

Level term insurance (like decreasing term insurance) is a fixed term from the outset and is usually chosen by those who want a life insurance plan that covers them for a set amount of time. Again, level term insurance covers your mortgage and still pays out if you pass away throughout the insured period.

Additionally, a level term policy will suit you if you’re seeking consolation for the worry that your loved ones will be left with your expenses when you die.

As this policy pays out the same amount (regardless of when you pass away throughout the insured period) the policy is usually more expensive than decreasing term insurance.  The amount of cover provided by the policy and length of time it runs for is agreed at the time by you and your insurer.

Life insurance will benefit you by ensuring that your loved ones will not be out of pocket when you die.

How Quick Quote Protect Can Help

If you want to eradicate your family’s worry of downsizing or relocating once you die, either policy gives you the opportunity to determine what plan is best suited to your needs. Save yourself the hassle of figuring out what’s best for your circumstances and let us do it for you today.

Contact us now using the options below.