Is purchasing decreasing term insurance the best way to protect a mortgage?
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Written on: 02.11.2009 [10:00]
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Shaw
Shaw
Topic creator
Posts: 2
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I'm hoping to purchase life insurance to coincide with our first home purchase, and have been told that decreasing term insurance can protect the repayments and offers a cheaper deal than other policies. Does anyone have experience of the best way to protect yourself and your bank balance? |
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Written on: 04.11.2009 [10:05]
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Megane
Megane
Posts: 3
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Decreasing term insurance is certainly one option – it is even recommended by some insurance companies as being 'mortgage life insurance'. Typically you will pay less for this kind of policy than others because the risk that the insurer has to pay out a lot of money decreases as time goes on. However, it is basically only useful as mortgage protection. You may also want to consider it if your family will be financially secure without your income at some point, and you only want to protect them for a few years until that time comes. In terms of providing all round life insurance cover, decreasing term insurance probably isn't your best bet though. |
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