Mortgage Protection and Life Insurance Compared

08 December 2016
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Mortgage protection and term insurance policies compared

  Mortgage Protection - Get a Quote now! Term Insurance - Get a Quote Now!
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