Mortgage Protection Life Insurance
Mortgage protection Life Insurance (also known as decreasing term life assurance) is designed to repay the outstanding amount of a repayment mortgage in the event of the death of a borrower during the mortgage term.
The amount of life insurance decreases over time as the amount outstanding on the mortgage reduces. The potential liability to the insurer decreases over time and therefore mortgage protection represents a low cost way of covering the liability on loans that will reduce.
Mortgage protection does not accrue an investment value, and therefore if the life assured(s) survive to the end of the agreed term there is no maturity value.
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