Mortgage protection assurance

Becks

I'm trying to sort out a policy with Cavendish Online for mortgage protection, but am baffled by some of the vocab on the application form.

It asks whether we want our term premium driven or benefit driven, and how long we want our term to be. Does this refer to the policy, or to the mortgage itself?

Thanks in advance

toonfish

it refers to both and - you would usually match the term of the policy with the mortgage and set it up on a required benefit basis. With respect this is the reason that a lot of folk are going to come unstuck by trying to save £1 per month. Make sure you know exactly what you're getting and write the policy in trust.

If you're not confident in doing this please see an IFA

dunstonh

Also be on the look out for pension term assurance, if the policy needs to be in trust (even with a mortgaged property, sometimes trusts can be useful in reducing the IHT liability) and guaranteed and reviewable premiums.