|
The amount of Life Insurance Cover reduces each month during the
term. (You could of course, choose to take out level term insurance,
where the cover will remain the same throughout the term irrespective
of the outstanding mortgage)
The plan is designed to pay an amount of Life Insurance Cover that
will be equal to the outstanding capital amount under a standard
repayment mortgage. (with most of the providers, this is dependant
on the interest rate not raising above 10%)
If you die during the specified term then the amount of Mortgage
Life Insurance Cover is paid out.
As soon as the amount Life Insurance is paid out the plan ceases.
If you survive the term and the Life Insurance Benefit has not become
payable then the plan ends and nothing is paid out.
|