Mortgage insurance is a legal requirement when taking out a mortgage. It will pay off your mortgage if you die unexpectedly. However, the cover will decrease as the capital of your mortgage increases. However, it can be an excellent way to protect your assets if something unexpected happens. You can choose a level life cover policy that increases in value annually or by 15%. In addition, mortgage protection insurance may be suitable for both interest-only and balance-payment mortgages.
Mortgage Insurance With Aviva
The two main types of mortgage protection cover available with Aviva are level term cover and decreasing term cover. The level term cover option protects your loved ones for a fixed period, while the decreasing term cover option reduces your payments as the mortgage balance decreases. Depending on your circumstances, you can choose between a level and a decreasing level cover. If you choose the level cover, your monthly premiums will be the same throughout the term of the policy.
The level term cover is the most common type of mortgage protection. This type of cover pays out an amount that remains constant throughout the entire mortgage term. If you suffer a terminal illness, you’ll receive a payout of up to 100% of the sum insured by Mortgage Broker Swindon. The remaining balance would go to your estate. Serious illness cover is more expensive than the other two types. You may want to opt for this option if your life insurance is a high priority.