Life Insurance & Critical Illness

The Basics   Risk Factors

Your options

There are generally two two types of mortgage life insurance: Mortgage Term Assurance and Mortgage Decreasing Term Assurance.

• Mortgage level term means the amount you are insured for remains the same throughout the term of your policy, unless you choose Indexation or exercise your Guaranteed Insurability Option.

• Mortgage decreasing term means the amount decreases over the term of the policy. This cover is designed to protect a repayment mortgage, so that the amount of insurance decreases roughly in line with your remaining mortgage debt.

Both types of mortgage life insurance can include Terminal Illness Cover at no extra cost.

Extra cover options

Sometimes you can choose to add these options to your Mortgage Term or Mortgage Decreasing Term Assurance policy:

• Critical Illness Cover This pays out a lump sum if you are diagnosed with one of the specified illnesses or disabilities and are eligible to claim. Cover for your children is often included at no extra charge. Of course, there are terms and conditions and you should ensure you've read and understood them. Particularly the providers list of specific illnesses covered.

• Waiver of Payment Premiums are waived if you suffer an illness or accident that stops you working for more than six months.

Your home may be repossessed if you do not keep up repayments on your mortgage

Coleman Clough Mortgages is an appointed representative of Coleman Clough Investment Management which is authorised and regulated by the Financial Service Authority.Typically we charge £395 for advising on and arranging your mortgage but a fee of up to 1% of the loan may be charged depending on your circumstances.

Coleman Clough Mortgages, The New Barn, Home Farm, The Avenue, Esholt, West Yorkshire, BD17 7RH