Different Types Of Cover

Question 1

Explain level cover

Answer 1

Cover amount stays the same throughout the policy term.

Question 2

Explain decreasing cover

Answer 2

Cover amount decreases each month broadly in line with the amount outstanding on a repayment mortgage.

Question 3

How do direct debits work on a protection policy?

Answer 3

First payment is taken 14 days from the start date which is usually from exchange of contracts.

Start date will then become collection date of no specified date was provided.

Client can amend the payment date to within 28 days from when the regular collection is due.