There are two different ways of arranging mortgage life insurance to protect your loved ones. You can have level life insurance, where the amount you’re insured for remains the same through the term you select. Or, you can have a decreasing policy, which means the amount you’re insured for will reduce broadly in line with the amount outstanding on your repayment mortgage. 

Decreasing policies tend to be cheaper than a level term policy and are generally the most appropriate for a repayment mortgage.

There are two different ways of arranging mortgage life insurance to protect your loved ones. You can have level life insurance, where the amount you’re insured for remains the same through the term you select. Or, you can have a decreasing policy, which means the amount you’re insured for will reduce broadly in line with the amount outstanding on your repayment mortgage. 

Decreasing policies tend to be cheaper than a level term policy and are generally the most appropriate for a repayment mortgage.

The amount of cover you apply for should cover your full mortgage including any fees, if you’re adding these to the loan. This means it’s important to update your life insurance plan if you move house or borrow more on your mortgage, otherwise there could be a shortfall in the event of a pay-out.

There isn’t a set figure that you pay for life insurance as there are many factors that influence the cost, including the length of the policy, life cover amount, your age, and your current health and medical history. We’d be happy to go through all of this with you to obtain a no obligation quote and give you a good understanding of what the premium might be. 

Terminal illness benefit 

This is usually included with most life insurance plans. It’s designed to pay out the benefit of a life insurance plan if a doctor or medical officer confirms in writing that you have a limited time left, which is usually less than 12 months. 

Waiver of premium benefit  

This is an add-on insurance to provide cover for your monthly premiums. If you’re off sick and unable to work for a period this insurance will maintain your monthly premiums. This is useful as often people’s income falls if they are signed off work long term. Typically, you need to be signed off work for 6 months before waiver of premium kicks in, but you can pay a little extra with some insurers to lower the wait.   

Guaranteed insurability option 

A guaranteed insurability option, lets you increase the cover on your life insurance policy without further medical underwriting. This is only allowed in certain circumstances, such as marriage, or the birth of a child and there are limits as to how much extra life cover you can have.  

Support helplines  

Some providers also offer helplines for mental health, medical queries, legal advice etc. For example, you could have a nurse on hand to discuss medical concerns, or access to mental health support. 

At Grosvenor May we have a wide range of providers who we use and recommend for mortgage life insurance. 

Contact us to find out more information about our family life insurance deals and packages.