Mortgage Protection

Term Insurance

Payout

Equals decreasing mortgage balance

Remains unchanged for policy life

Term

Same as mortgage term,generally age 65/sometimes 70

Up to age 80

Convertibility –extend policy term at future date without further medical evidence

Does not apply

Optional extra

Suitability

To cover mortgage only/not suitable for interest only mortgages

To cover mortgage and possible future mortgages or stand alone life policy

Pricing

Lowest price life insurance

Slightly more expensive see quotes

Indexation

Not available

Optional extra

Mortgage requirement

Minimum requirement for under 50 years old

Suitable as mortgage security also

Remortgaging

Generally not suitable unless policy contains special clause to allow remortgaging

May be used in whole or in part subject to mortgage term