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What is a Mortgage Decreasing Life Insurance?These plans are commonly used to protect a 'repayment' style mortgage i.e. where your debt to the lender reduces over the mortgage term. If you die during the mortgage term, the plan policy produces a lump sum which is used to pay off the outstanding balance of your mortgage. Over the plan term, the amount of life cover reduces to match your outstanding mortgage loan - this helps keep the cost down as you are only paying for cover you need. This is usually the cheapest way of insuring your repayment mortgage. Critical Illness cover can also be included in your plan. When you do this the plan will pay out the lump sum when your either die or are diagnosed with one of the listed critical illnesses. A life policy including critical illness cover will cost significantly more than life cover only. Life Direct
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