What is the difference between mortgage protection and a term assurance policy?

Mortgage protection is the most basic form of life assurance and the cheapest. It is designed to decrease each year in line with your mortgage balance outstanding. The term and cover amount will usually be the same amount as the mortgage. In the event of a death a mortgage protection plan is usually paid to the bank to clear your outstanding mortgage.

Term assurance is a life insurance plan that covers you for a specified amount over a specified term. In the event of a death, a cash lump sum will be paid out to your estate.