Can anybody help explain life insurance?

[Maxf]

I'm looking for some life insurance, and confused.com is showing 'level term' and 'mortgage protection' as the two options?

I have no knowledge whatsoever of this kind of policy!

I need cover to pay for my flat if I die. I dont need any other money as I dont have kids and GF is a reasonable earner - clearly this may change though.

Are the policies fixed for the term of the mortgage (if I select it), or can I change/move/cancel etc (generally)?

What is the difference between 'level term' and 'mortgage protection'? Which might be best for my circumstances?

[Sarnie]

Maxf said:

I'm looking for some life insurance, and confused.com is showing 'level term' and 'mortgage protection' as the two options?

I have no knowledge whatsoever of this kind of policy!

I need cover to pay for my flat if I die. I dont need any other money as I dont have kids and GF is a reasonable earner - clearly this may change though.

Are the policies fixed for the term of the mortgage (if I select it), or can I change/move/cancel etc (generally)?

What is the difference between 'level term' and 'mortgage protection'? Which might be best for my circumstances?

Level Term means that the sum assured will remain the same throught the policy.
Mortgage Protection means that your sum assured will decrease in line with your mortgage.

The policy will ordinarily set up to cover the mortgage amount for the duration of it's term also. It's only an insurance policy and not a credit agreement, so as your situation changes you can alter your cover or move it to another provider, as and when you wish.

This is something I can help you with, you have PM

[greygoose]

Maxf said:

I'm looking for some life insurance, and confused.com is showing 'level term' and 'mortgage protection' as the two options?

I have no knowledge whatsoever of this kind of policy!

I need cover to pay for my flat if I die. I dont need any other money as I dont have kids and GF is a reasonable earner - clearly this may change though.

Are the policies fixed for the term of the mortgage (if I select it), or can I change/move/cancel etc (generally)?

What is the difference between 'level term' and 'mortgage protection'? Which might be best for my circumstances?

Level term pays a fixed amount whenever you die, mortgage life insurance or decreasing term life insurance pays off your mortgage and so the amount goes down year on year (assuming you have a repayment mortgage as the outstanding amount left on your mortgage decreases). If you don't need cover for any beneficiaries then the decreasing one is fine.