How does a Mortgage Protection Policy differ from a normal Term Assurance policy?
A normal Term Assurance Policy, usually known as a Level Term Assurance Policy, provides the same amount of cover (level) for the length of the term of the policy. A Mortgage Protection Policy is intended to provide just enough cover to clear the remaining mortgage, this amount decreases over the lifetime of the mortgage, and policy, so it is cheaper to provide this limited amount of cover, while providing the full amount of required protection, which is the amount required to clear the mortgage at any given time.
