Protect your Mortgage with Mortgage Life Cover
Mortgage life cover is a type of term assurance specifically designed to protect your mortgage. The type of mortgage term life assurance quotes that you need depends on the type of mortgage that you have and your personal circumstances.
Do You Have a Repayment Mortgage?
Consider a Decreasing Term Life Assurance Policy. This is the Cheapest Life Insurance in Ireland to Cover a Repayment Mortgage.
Decreasing Term Assurance (DTA) or Mortgage Protection Assurance (MPA) pays out a lump sum in the event of death, which reduces during the term of the plan. At the outset you choose the initial sum assured you would like and the term of the plan. During the life of a decreasing term life assurance policy the sum assured reduces every month in gradual steps to nil at the end of the term. A decreasing term life insurance policy would normally be used to cover a mortgage or other loan where the amount owed reduces each month as you make loan repayments, such as a repayment mortgage.
Decreasing Term cover ensures that the amount of cover is tailored to just cover the loan and no more each month. This makes it the cheapest life insurance to cover a repayment mortgage. Decreasing Term life Insurance quotes are cheaper than Level Term Assurance quotes.
Consider a Level Term Life Assurance Policy. Pays a Fixed Sum Payment in the Event of Death.
For an interest only mortgage, where the amount owed to the lender never reduces as only the interest owed is repaid every month, a level term assurance policy is usually used. This means the level of cover remains the same throughout the term of the policy to ensure that there is always enough cover to clear the mortgage in full in Ireland.
Level Term Assurance (LTA) pays out a fixed lump sum in the event of death within the term of the plan. Once the plan has started the level of cover will not change.
Level Term Life Assurance would normally be used to provide a lump sum of level term life cover to your next of kin in the event of your death to replace your income or to cover a mortgage or other debt where the amount that is owed to the lender does not reduce over time e.g. an interest only mortgage or loan.
This is also sometimes referred to as Level Term Insurance in Ireland or Level Term Life Insurance in Ireland