Decreasing Term
Life Insurance
Life Insurance
Affordable protection for your mortgage
Getting started with decreasing term life insurance
Protecting your mortgage is just as important as securing the keys when buying a home. Decreasing term life insurance is a smart, cost-effective way to ensure your loved ones can stay in your home, no matter what happens.
What is decreasing term insurance?
If you, or a co-owner of your home, pass away, how would the mortgage be paid?
With life insurance, should someone responsible for your mortgage die during the policy term, you or your family can receive a cash payout if a valid claim is made.
Decreasing term life insurance is designed to help pay off your outstanding mortgage. As you pay off your mortgage over time, the insurance cover amount gradually decreases too, so it always matches what’s left to repay.
This means that you or your loved ones won’t be left with the debt. If the policy holder died during the mortgage term the insurance can help clear the remaining mortgage and remove a huge financial commitment.
These conversations may not be easy, but they’re extremely important. You want to be sure you and your loved ones have financial stability.
How does decreasing term cover work with your mortgage?
Decreasing term life insurance is a great match for capital repayment mortgages. That’s because with this type of insurance, the level of cover decreases in line with your outstanding mortgage balance. When you reach the end of the term of the policy it will simply end with no cash in value.
As the life insurance cover decreases in line with your mortgage, it’s essential to ensure that your cover matches your loan. It’s essential to regularly review your policy if your circumstances or mortgage requirements change. Our mortgage and protection experts can help you secure the right policy for you.
Do you need life insurance for a mortgage?
While having life insurance with your mortgage is not a conditional requirement, it’s highly recommended, especially if you’re buying a home with someone else. A suitable policy can help ensure that, if one of you passes away during the mortgage term, the surviving partner isn’t left struggling to cover the repayments alone.
For many people, a mortgage is their largest financial commitment. Decreasing term life insurance offers a cost-effective way to give you peace of mind that your loved ones could stay in the home if the unexpected happens.
How much does decreasing term life insurance cost?
The cost will depend on numerous factors including, your age, your health and lifestyle, the remaining mortgage balance and the term of your mortgage.
How do I choose the best life insurance for my home mortgage?
The right option for you will depend on your circumstances, so working with our experts is the best way to ensure you get the best level of cover for you or you and your family.
Get an insurance quote
Speak to one of our specialist advisors today to find out more about the insurance policies we offer,
and how MFB can help you secure the best mortgage protection.
What are the benefits of choosing decreasing term insurance?
There are many reasons to choose decreasing term life insurance. These include:
Choosing the right life insurance
An alternative option to decreasing term life insurance is level term insurance. Fixed financial protection with a guaranteed payout amount at any point in the policy gives you the peace of mind that your family won’t be left with financial burdens.
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