Mortgage Protection and Life Insurance Compared
08 December 2016
Mortgage protection and term insurance policies compared
| Mortgage Protection - Get a Quote now! | Term Insurance - Get a Quote Now! | |
| Payout | Equals decreasing mortgage balance | Remains unchanged for policy life |
| Term | Same as mortgage term, generally age 65, sometimes 70 | Up to age 80 |
| Convertibility –extend policy term at future date without further medical evidence | Does not apply | Optional extra |
| Suitability | To cover mortgage only/not suitable for interest only mortgages | To cover mortgage and possible future mortgages or stand alone life policy |
| Pricing | Lowest price life insurance | Slightly more expensive see quotes |
| Indexation | Not available | Optional extra |
| Mortgage requirement | Minimum requirement for under 50 years old | Suitable as mortgage security also |
| Remortgaging | Generally not suitable unless policy contains special clause to allow remortgaging | May be used in whole or in part subject to mortgage term |