The mortgage definition for Life assurance:
An insurance policy that pays a lump sum on death. Often taken out with a mortgage to provide money for the loan to be repaid if the borrower dies during the term.
Decreasing term assuranceDecreasing term assurance
A life insurance policy that pays out a lump sum in the event of death. The amount paid out can be calculated so that it fall in line with your outstanding mortgage debt – meaning that over time the borrowers premiums also fall. This type of policy is well suited to providing cover on a repayment mortgage.
Level term assuranceLevel term assurance
Life assurance that pays out a set amount throughout the entire agreement if you die during the term.
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