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Confused with Term Insurance and Mortgage Protection

Twins · 2008-07-22 10:17:02

Hi I've been looking on Cavendish Online and I am confused as to which policy I should go for. I am looking to have my mortgage paid off should my spouse or I die and also provide some money to my children. I understand that Term Insurance helps you with the cash for loved ones but does it also pay your mortgage too? I…

Comments

dunstonh Posts: 121,370 Forumite

23 July 2008 at 9:31AM

shopaholictiedtheknot wrote: »

I am even more confused (doesn't take much :rolleyes: ) Do you mean I need to take out the £140K which will cover my mortgage + 10 times our salary/ies (minus 5%) ?

The 10x salary is a rough figure. However, if you intend to use that then yes, you should do one level term assurance for that and another decreasing term assurance for the mortgage (assuming the mortgage is capital & repayment basis).

I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.

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