Life Difference between Mortgage Protection and Term Assurance

[horusd]

Apologies if this has been covered already, can't find a reference to it. I'm reviewing a friend's cover for him as he's lost when it comes to this. He currently has Term Assurance. It's basically to cover his mortgage and seems dear enough. Reviewing quotes online I seem to be getting better quotes for him on mortgage life cover, but I want to be sure there aren't big differences in the cover.

I assume that mortgage cover is on a reducing balance and term is a set amount. Am I right?

 

[StevieC]

Thats correct. Level Term Assurance the sum assured stays the same for the duration of the policy. Mortgage Protection cover the sum assured decreases.

Check to make sure your friend doesnt have an interest only mortgage as in this circumstance the lender may insist on a level term policy.


www.CheaperLifeAssurance.ie

 

[horusd]

Thanks Stevie, just wanted to be double sure. Especially as it's not my own cover.

 

[Bronte]

In relation to quotes, do not cancel any life insurance until a new policy is in place.

 

[Sumatra]

horusd, regarding reviewing your friends cover you said your friend was lost and he asked you but you came on here because you were not sure. If he acted on your advice then it is still not too late to suggest your friend gets good independent financial advice to be sure.