The basics of Mortgage life insurance Mortgage life insurance, which is also called Mortgage Term Assurance, is designed to help pay off your mortgage in the event of your death. The length of time you choose to be insured for is called the 'term'. You can choose a term between one and 40 years for Mortgage Term Assurance, or between five and 40 years for Mortgage Decreasing Term Assurance, depending on your age when you take the policy out. If you die during the term, your policy will pay out a lump sum of money. You choose how much life cover you buy. People often want their mortgage life insurance policy to pay out the value of their mortgage or other loan. Most providers offer a choice between Mortgage Term Assurance and Mortgage Decreasing Term Assurance.
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