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.
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: -
|
