Can it be used to cover an interest only mortgage or a repayment mortgage?

Mortgage Temporary Assurance is only suitable to cover a capital and interest repayment mortgage, and should not be used for an interest only mortgage.

Am I eligible?

To take out a policy you must be aged between 18 and 70 years old provided the cover ends before your 75th birthday, and if you opt for Critical Illness cover you must be aged between 18 and 65 years old with cover ending before your 70th birthday.

What policy term will I need?

The policy term must equal the term of your repayment mortgage.

Is there a minimum and maximum term allowed?

The minimum term available is 5 years and the maximum it can be is 50 years. If critical illness cover is incorporated, the maximum term is 35 years.

How will my premiums be calculated?

Your Mortgage Temporary Assurance premiums will reflect the level of cover you require, the policy term, your age, sex, your state of health, and whether or not you smoke.

Could my premiums change during the policy term?

No. Your premiums are guaranteed to remain unchanged for the whole of the policy term.

What happens if I stop paying my premiums?

Your mortgage cover will cease and would no longer be valid in the event of a claim.

What happens if I move house or increase my mortgage?

If you move house or increase your mortgage, a new policy can be arranged to take account of the changed circumstances, and your existing cover cancelled. You must take out the new policy within 3 months of the new mortgage commencing. This is subject to conditions which are explained in the key features document.

What happens to the policy if no claim is made before the end of the policy term?

When the policy reaches the end of its term without a claim arising, the policy then ends and becomes valueless.

If the life assured dies within the policy term, how much would the policy pay out?

The lump sum paid out will depend on how long ago the policy started. Your initial sum assured is reduced on the first day of each month after the policy starts. The reduction will not be based on the amount actually outstanding under the mortgage but will be calculated on the assumption that the mortgage has a fixed rate of interest of 9% throughout the whole of the mortgage term and that all instalments of capital and interest have been paid in full.

What happens to the policy after a claim?

The benefit can only be paid out once, on the mortgage it was taken out to cover. The policy will then cease.

Are there any reasons why the policy may not pay out?

The policy will not pay out:

• On death as a result of suicide in the first year of the policy, or within one year of the policy being reinstated.
• If you do not disclose any information requested during the application process.
• If you stop paying your premiums, as this means the cover will end.
• If the life assured does not die within the policy term.

Can I cash in the policy at any time?

No. Your policy will not acquire a cash-in value at any time.

Can the policy cover two lives instead of just one?

Yes. You can arrange cover for two people, for example, you and your spouse. In this case, the policy would pay out on the first death within the term of the policy.

Would any tax be payable on payout of the sum assured?

The benefits, which are paid out on death, will normally be payable free of UK Income Tax and Capital Gain Tax. Tax legislation, however, is subject to change.

Full details of this policy can be found in the Mortgage Temporary Assurance Key Features Document which should be read and understood before you decide to proceed with any application. This can be requested via our contact us page or by calling free on 0800 622 323.

For security and training purposes, telephone calls may be recorded and monitored. Your enquiry may result in a call from an NFU Mutual Financial Consultant or Customer Telephone Adviser who advises on NFU Mutual's products and services and in special circumstances those of other providers.