Home Mortgage Protection and Life Assurance

[elava]

Hello,

I just bought an apartment and am confusing about Mortgage Protection and Life Assurance.

Can somebody please help?

1. What is difference between Mortgage Protection and Life Assurance?
2. What is rebuilding cost for an apartment?

Thanks!

 

[NorfBank]

The amount of cover in a mortgage protection policy decreases in line with the mortgage, it will simply clear the mortgage on death. Cheapest form of life cover - recommended for singletons with no dependents.

Life assurance is level term cover, it does not decrease in line with the mortgage. There may be a lump sum left to your estate on death after the mortgage is paid off (if the life assurance policy has been assigned to the lender to clear the mortgage on death).

Rebuild cost = reinsurance value, you will get this figure from your valuation.

 

[elava]

Very brief and clear explanations! Thanks a lot NorfBank!