Life insurance for your mortgage

Life insuranceWhy would you want life insurance

The loss of a spouse or parent can leave dependants with additional issues to cope with other than the emotional. If you are inadequately insured, your dependants may be left with a large debt which could lead to the loss of the family home and affect their quality of life.
Lending institutions will not forget the mortgage debt. They will continue to pursue the debt through your dependants.

What is it

Life insurance policies pay out a lump sum or income to dependants in the event of your death.

Things to consider

There are many different types of plan, designed to address different shortfalls, these include:
Level Term Assurance – Pays out a set amount of money in the event of a successful claim. These are good for personal or family protection or to protect interest only mortgages
Decreasing Term Assurance – Pays out a lump sum that decreases annually as the policy term progresses. These are good for repayment type mortgages
Family Income Benefit – Pays a stepped benefit that can be received monthly or annually
 
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