A Mortgage Protection Term Assurance gives financial protection for dependants by providing a lump sum in the event of death. The lump sum benefit can provide a tax-free lump sum sufficient to repay the outstanding repayment mortgage debt.
The amount of benefit reduces during the term of the policy and reduces to zero by the expiry date. Please see the key features document for the precise details.
Summary of benefits:
- The benefits under this policy are guaranteed and do not depend on investment performance.
- Your mortgage will be cleared in the event of your death.
- Secure help in bringing up children and maintaining the family home.
- Allow a surviving parent to devote time and attention to the needs of children.
- The policy can be written under trust for ease of administration on death or part of an IHT planning exercise to reduce the value of your estate(s).
- Can be written as a single or joint policy to meet your objectives.
- If interest rates rise above the level shown on the policy there may be a shortfall in the life cover.
- If you stop paying the contribution the life cover will cease.
- If you allow your mortgage payments to fall behind, the plan benefit paid out may not necessarily cover the outstanding mortgage.
- The plan has no cash value either during or at the end of the term.