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Categories: My cover , Life insurance

Is my life insurance linked to my mortgage?

We can't directly link your Life Insurance Policy to your mortgage. However, your mortgage lender may register an interest in a portion of the proceeds to cover the remaining cost of the mortgage if you were to die before it's repaid. But this only acknowledges a third-party interest, and your cover amount still won’t be directly linked to whatever’s left to pay on your mortgage. So, while your life insurance policy with decreasing cover might decrease broadly in line with your repayment mortgage, there’s no direct link between the value of the policy and the amount that's outstanding on your loan.

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