I need a life insurance that will cover my mortgage if i die

Hi enquiri66 and welcome to the forum.

There are two types of life assurance available to cover repayment of a mortgage in the event of death...

(1) Level term assurance that pays out a static chosen sum of money on your death and within a selected term i.e. 25 years.

(2) Decreasing Term Assurance that pays out a decreasing amount over the term of the policy that you select. This is intended to run alongside a repayment mortgage where the balance owed will also decrease.

Obviously, decreasing term assurance is cheaper as the risk on the amount of payout reduces over the term but personally I would always go for the level term for the guaranteed amount of benefit on death and you can include an amount to cover funeral costs in this if you wish.

Remember that both term and decreasing terms assurances have no surrender or cash values during their terms and as such they are pure life cover and nothing else.

http://www.money.co.uk/life-insurance.htm