Level Term Assurance in Lancashire Retirement planning, investments and corporate planning. Cover that stays level Level Term Assurance is life cover that stays level throughout the term of the policy, and is usually geared for the same term of your mortgage to coincide with the final payment date.
This type of cover is best suited to interest only mortgages, or those wanting to have a surplus sum once a capital repayment mortgage is paid off. The diagram at the bottom of this page illustrates that as the term of the mortgage continues, the cover
remains in place at a consistent level.
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A higher guaranteed sum assured Level term assurance can also be used to cover capital repayment mortgages, even though it is predominantly used with interest only mortgages. In the instance of capital repayment mortgages, it is useful for providing dependants with surplus cash once
the mortgage has been paid off.
Level Term Assurance is slightly more expensive than decreasing term assurance, but offers a higher guaranteed sum assured throughout the term of the policy.
It would be unwise to insure an interest only mortgage with decreasing term assurance, as the levels of cover would fall significantly leaving you massively underinsured.
Another life assurance option on an interest only mortgage could be to look at a savings product with combined life cover, such as an endowment policy or pension plan, however it is not within the scope of this website to advise on investments.
Contact Us For advice on repayment vehicles for an interest only mortgage you can contact PM Independent Financial Services on phone by clicking here or online by clicking here ,
and speak to one of their Investment Specialists. Call us on 0800 0560 789 01282 866190
