Insurance

Protect your mortgage - Decreasing Term Mortgage Life Insurance

What is Decreasing Term Mortgage Life Insurance?

Decreasing Term Mortgage Life Insurance is designed to pay a lump sum that could help to pay off a repayment mortgage if you die during the term of the policy.

The cover you agree at the start of your policy decreases roughly in line with your outstanding repayment mortgage.

If you have an interest only mortgage you should consider Level Term Mortgage Life Insurance as the cover will remain the same throughout the policy.

Before you apply for Life Insurance you must read and understand the product summary and risks below and the Key Features document as it outlines circumstances under which the policy would not pay out, as well as other terms and conditions.

Product summary

  • Decreasing Term Mortgage Life Insurance is designed to pay off your repayment mortgage ("Capital & Interest") should you die during the term of the policy. 
  • It is not designed to pay off an interest only mortgage should you die during the term. You should consider our  Level Term Mortgage Life Insurance for interest only mortgages.
  • You could pay as little as £6 per month depending on your circumstances and needs
  • Payments are fixed throughout the term of the policy and can be paid monthly or annually
  • It is up to you how much cover you want.
  • You choose the length of the term - from 5 to 40 years although the plan must end before your 80th birthday
  • You benefit from Terminal illness cover during the term of the  policy - if you are eligible to claim, your policy will pay out the lump sum if you are diagnosed with a terminal illness, rather than when you die
  • You can get an immediate quote, and apply online, now.

 


 

Risks you should consider

  •  It is very important that you provide all the information that we ask for, and that it is accurate. It's best to provide too much information than not provide something that could affect your policy. Failure to mention something, like a medical condition for example, could mean that a claim would not be paid.
  • Life insurance is not an investment product. It will have no cash-in value at any time. Also, if you stop paying the premiums before the end of your policy your cover will end 30 days after your missed premium payment.
  • If your mortgage interest rate averages over 10% during the policy term, there may not be enough to pay your mortgage off in full.
  • Terminal illness cover does not apply in the last 18 months of a policy term.

 


 

More Information

Yorkshire Building Society introduces its customers to Legal & General for the purposes of advising on and arranging life assurance and investment products bearing Legal & General's name.


Get a quote and apply now

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