Decreasing Life Insurance

This is also known as mortgage protection, as it is usually associated with a repayment mortgage. The sum assured will be set at the start, but unlike level term assurance, it will decrease over the term of the policy, roughly in line with your repayment mortgage. Upon the death of the life assured, the policy will pay out to the next of kin who can use the money to repay the mortgage.

Most insurance companies include terminal illness cover free of charge. This is also on a decreasing basis. This will pay out the sum assured to the policy holder upon diagnosis of a terminal illness during the term of the policy (although not usually during the remaining few months of the term of the policy – it will still pay out on death).

A conveyancing solicitor will also be required to complete a mortgage or remortgage on your behalf.