For interest only mortgages you would normally use a level term life insurance plan. The amount payable on death from this type of plan never decreases. This is because you will always need to pay back all of the money you originally borrowed from the mortgage provider at the outset.
With both policies, the life insurance plans aim to cover the full repayment of your mortgage in the event of you dying prematurely. When they come to the end of the term that you set them up for in the first place, they expire without value.
If you want to provide extra financial security you usually have the option of adding features to your policy. These typically include critical illness cover, and terminal illness benefit.
More about life insurance for mortgages
If you are interested in researching life insurance plans for mortgages further you should speak to an independent financial adviser.
Alternatively, you can use our interactive online research tool, the Finance Navigator. Based on the answers you give to a number of targeted questions, the Mortgage Protection Finance Navigator will help you to establish your own life insurance needs. It will then produce a bespoke guidance report for you to read through to help you make an informed decision. It will also allow you to learn more about some of the most commonly used life insurance plans.
Once you have your report, you can then use our online quotation system to find some of the most competitively priced life insurance plans from a selection of major UK life insurance providers. Once you have found the right plan for you, use our 'apply online' facility.
