Who will pay off your mortgage if you can’t?
Mortgage life insurance is designed to repay your mortgage debt should you, or anybody else named on the policy, die before the policy term expires.
Besides offering Life Cover, it is also possible to include Critical Illness cover and a number of other benefits on your policy if you so wish.
It makes sense to ensure that you have sufficient life cover to repay your mortgage if you die. This is particularly important if you own the property with a partner, or if you have a family.
Even if you are single, it is still a prudent decision to take out insurance. You never know when your circumstances may change and you may find you are uninsurable when you come to apply in the future. The main benefits of mortgage life insurance are as follows:
- You can insure yourself to cover the mortgage debt for the exact term of the mortgage
- You can include other benefits at the time of application, such as critical illness benefit. This means that you have all of your cover in one policy, again helping keep cost to a minimum
- You can protect both a repayment and interest only mortgage in different ways, which means you can make sure you keep premiums to a minimum
- You can keep the policy in place even if you change mortgage lenders or the amount you borrow (although you may need to consider a top-up policy)
Unfortunately during a 25-year period, statistics also tell us that, of all deaths, at least 20% of those will occur in men aged between 25 and 65. Female deaths in the same age range is over 12%.
Obviously cost is important, and so you will probably only want to insure yourself for the amount you will owe to your mortgage lender during the period of the loan.
There are a variety of options, so to ensure you don’t lose your home unnecessarily, talk to a qualified Holborn Assets adviser today.