Decreasing Life Insurance, also known as Mortgage Life Insurance, is a type of insurance that can provide financial protection for those who have a repayment mortgage. Essentially, the cover decreases over time in line with the way a repayment mortgage decrease.
This type of insurance could pay out a cash sum if you were to pass away while covered by the policy or if you were diagnosed with a terminal illness with life expectancy of less than 12 months. Having this type of insurance can provide peace of mind that your loved ones will be able to stay in their family home without the worry of mortgage payments after you’re gone.
With the cost of living on the rise, many people are finding they have less disposable income, making this type of insurance an important consideration when buying a home.
It’s important to note that Mortgage Life Insurance is not the same as Mortgage Payment Protection Insurance, which is designed to cover your mortgage payments if you’re unable to work due to accident, sickness, or unemployment. This is covered off in our advice page “Mortgage Payment Protection Insurance” which you can find at the bottom of this page.
It’s also important to review your policy regularly to ensure it still meets your needs, as your circumstances may change over time.