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• - Affordable Life Insurance
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Life Insurance

Mortgage Protection Policies

Anybody who has a mortgage on their home will know that payments can sometimes be tough to meet. So, Daai offer a selection of Mortgage Protection policies, which essentially cover your mortgage against unexpected eventualities - such as premature death or critical illness. A Mortgage Protection policy - or Life Insurance, as they are usually known - also serves to satisfy your mortgage lender that you will be able to repay all the money you've borrowed, whatever happens. After all, having your house repossessed by the bank after you've gone would obviously make life hard for the rest of your family.

Deciding on the right life insurance policy

What type of life insurance you will need can depend on the type of mortgage you have chosen to take out on your property. Below are the two main types, along with an explanation of what policy you'll need:

Repayment mortgage

A repayment mortgage is one in which you pay the mortgage lender a monthly amount to cover part of the loan, along with part of the interest on the loan. Because of this, the capital amount remaining on the loan will decrease every month, until the loan is eventually paid off completely. The life insurance you will require for this sort of term is called Decreasing Term Life Insurance. It's called decreasing term because, as the loan amount decreases every year, so does the amount insured. When the mortgage term comes to an end and the loan has been paid off, the insurance policy ceases without paying any money out.

Interest-only mortgage

As the name suggests, the basic principal with an interest only mortgage is that you are only paying off the interest on your mortgage loan, and must pay off the capital through a separate investment plan or cover. The Life Insurance required for this type of mortgage is called Level Term Insurance, and the sum you pay stays the same throughout the life of the plan. As with a Decreasing Term policy, at the end of the mortgage term, the insurance policy ceases without paying any money out.

Are there additional features available for my cover?

There is a selection of extra features available to you when you take our life insurance with Daai. The different types are outlined below:

Critical illness cover

This cover will complement your life insurance policy by additionally paying out upon diagnosis of a critical illness. It adds an extra amount to the overall premium.

Premium protection

This cover is also sometimes referred to as 'waiver of premium', and in a nutshell it allows you to waive your monthly or annual premium if you are ill or unable to work for some reason.

Terminal illness cover

Unlike critical illness cover, Terminal Illness cover doesn't cost any extra, and is usually included as part of a standard insurance policy. It was pay out if you are diagnosed with a terminal illness that you are unlikely to survive for more than 12 months.