Yes, a level term life insurance policy can be used to protect a mortgage.
Level term mortgage life insurance simply refers to a level term life insurance policy which is taken out to protect a mortgage.
The large pay out potential means it’s ideal for covering an interest only mortgage, which would allow your loved ones to remain in the family home after your passing.
In contrast, if you have a repayment mortgage, a level term life insurance pay out could be used to cover your mortgage balance and provide loved ones with an inheritance (depending on your remaining balance).
In this instance, as your mortgage balance decreases, more of the pay out could be used as an inheritance by your loved ones to spend as they wish.
If you only need cover to protect a repayment mortgage, a decreasing term life insurance policy may be more suitable.
Contact a member of our team about the best way to protect your mortgage.