Level Term Assurance
This is a life assurance policy which will repay your mortgage should you die during the term of the loan. Used with Interest-Only mortgages, the death benefit sum assured is set as the balance of your mortgage at the start of your loan; this doesn’t change during the term of the mortgage, as the balance does not reduce over the mortgage term. Should you survive the whole mortgage term, the policy ends, as does the death benefit. There is no investment factor in this kind of policy.