I'm a bit confused with mortgage life assurance and level cover. If I had a repayment mortgage of £100,000 for instance and I wanted cover to clear the mortgage and I also wanted extra for living expenses what is the best way to do it?
To me, it would make more sense to have both so you would know exactly what you were covered for. This may however not be cost effective.
dunstonh wrote: »
A decreasing term assurance for the mortgage (assuming its capital & repayment mortgage) and a level term assurance and/or family income benefit policy for the family protection. i.e. two different needs means two different products. Many modern life policies allow you to have multiple segments under the same policy. So, you can set up multiple needs and types of cover under the same plan.
it is cost effective as the chances of your family protection needs having the same term as your mortgage protection needs is unlikely. Also, what happens if your mortgage changes in future needs (you borrow more or change the term). You would then have to potentially re-write the lot again or be stuck with a policy that doesnt fit your needs.
If I just want money to cover funeral costs etc paid out when I die what should I be looking for. Is it a whole life insurance policy I require, or am I as well paying for a funeral plan with an undertaker rather than life insurance?
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