Why is Mortgage Life Insurance cheaper than normal Life Insurance?

Mortgage Life Insurance is a particular type of insurance designed specifically for people with a repayment mortgage.

STEP 1 of 2
Type of cover
Life Insurance       Mortgage Life Insurance
 
Cover Level (£)

Number of years
Do you want:  
Critical illness cover
Family income benefit
 

Hot Topics

Will your premiums increase?
It depends upon whether you have a “Reviewable” or “Guaranteed” policy.
Does your age affect your premium?
Yes, your age is one of the most important aspects that determines your premium. (Other important aspects include the level of cover you want, whether you are male or female, whether you are a smoker, your occupation and health record.)
Is a medical absolutely necessary?
No. Most people do not require a medical. Normally an insurer will only ask for a medical if you have existing health issues that cannot be resolved by a report from your GP or if you have applied for an especially high sum of insurance.
Can life insurance be arranged quickly?
The short answer is that the speed depends upon your personal details.
Can A Claim Be Made If The Policy Is Lost?
Yes. Simply contact the Insurance Company and they’ll send a “Lost Policy Claim Form”.
With a repayment mortgage, the capital owed to the mortgage provider decreases each month as part of the monthly repayment steadily pays off the sum that was initially borrowed.

The purpose of your Mortgage Life Insurance is to repay the capital you owe if you died. Therefore, the amount of insurance cover you need, decreases as the years go by in line with your outstanding capital. This means that the insurer can afford to charge less in comparison with a policy where the sum insured remains fixed - as is the case with normal life insurance.

Frequently Asked Questions related to the above topic.
Click below if you wish to read them: -