Life insurance

Whether you have an interest only mortgage or a repayment mortgage, you'll need a way to repay it if you die.

Level term insurance –

Pays a fixed cash sum if you die and is often used with an interest only mortgage.

You have to choose the amount of cover, which is usually the mortgage amount, and how long it’s to run for before the insurance starts. Most policies also pay out early if you become terminally ill.

Mortgage protection insurance or decreasing term insurance -

provides a cash sum payment to cover your outstanding mortgage if you die. It is perfect for a repayment mortgage as the cash payment reduces as your mortgage reduces.

Mortgage protection or decreasing term insurance is the cheapest way of protecting a repayment mortgage.

Critical illness insurance

Pays out a cash sum if you’re diagnosed with a critical illness. The most common illnesses covered are heart attacks, cancers and strokes.

Critical illness insurance can be bought on its own or added to level term insurance or mortgage protection insurance.

Buildings and contents insurance

You can buy buildings and contents insurance separately or together as a package. Buying them together means you can often save money. However this isn’t always the best option – for example if you live in a flat, you may already pay towards buildings insurance with other residents.

Buildings insurance –

Contents Insurance –