What is term life insurance?

What is term life insurance?


Term life insurance covers you for the length of time you've chosen (usually in line with the end date of a mortgage). This plan will end either if you pass away during the term, in which case the policy will pay out; or at the date you've chosen the plan to stop, at which point the cover will stop and you get nothing back.

We offer Life Insurance or Life Insurance with Critical Illness which can be chosen as level or decreasing. You can use the money for whatever you'd like and can be used to pay off the mortgage. If you include critical illness cover, you might decide the money might be better spent making changes to your home to accommodate the big changes to your lifestyle that having a critical illness can bring.

This is not to be confused with Mortgage Payment Protection Insurance (MPPI) which is designed to pay your mortgage repayments if you have an accident, sickness or unemployment. We don't currently offer an MPPI policy, but can provide Income Protection, which will replace a portion of your salary if you are unable to work if you have an accident or are sick for a long time. This money can be used for anything you'd like, including mortgage payments to make sure your home is secure.

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