Taking our protection to ensure that your family would not be left struggling financially in the event of your death is essential. Life is hard after the loss of a loved one and this is a time when they do not want to be worrying where to get money from to pay monthly outgoings. One of the outgoings could be a mortgage, if you want to ensure that your family would be left mortgage free in the event that you passed away while still owing on the mortgage then you could consider taking out mortgage life cover.
Mortgage life cover is known as decreasing term assurance. The insurance can be taken by the policy holder insuring the remaining balance of their mortgage over the term left on the mortgage. As the name of the policy suggests the amount that you insure, which your loved ones would get back, would decrease in line with the mortgage balance as you pay off the mortgage each month. If you outlive the policy then the mortgage will be paid up and so no payment would be made. If you should pass away at anytime during the term of the life insurance your loved ones would get the amount left on the mortgage at the time of your death.
The cost of life cover would take many different factors into account. One of the things that will set the premiums is of course the amount you choose to insure. Your current age will also be taken into account when you take on life insurance as will any ongoing medical conditions. If for example you suffer from diabetes or asthma then you could expect to pay out more in premiums for life insurance. Your family history will also be taken into account and any illnesses taken into account. If you are seen to have a job that is dangerous then you could also expect to pay out more for your insurance. The same would apply to if you took part in any dangerous activities which could include such as flying and mountain climbing.
Of course mortgage life cover would only provide your loved ones with financial security in the event of your death for your mortgage. If you wanted to leave your family financially secure so they would have a sum of money in the event of your death to be able to maintain their way of life in general and any other outgoings they might have then you would need to give some thought to taking out a different form of life insurance. You might want to give some thought to taking out term assurance or whole of life insurance. Term insurance could be taken by choosing how much cover to take and how many years to take it over, if you passed away during this time your loved ones would receive a lump sum payment. If you outlived the policy it would expire and no pay out would be made. Whole of life can be taken by choosing how much life cover is needed and as long as you continue to maintain those payments your family would receive payment upon your death.
David Thomson is Chief Executive of BestDealInsurance an independent specialist broker dedicated to providing their clients with the best insurance deal on their home insurance, car and life insurance.
Mortgage life cover is known as decreasing term assurance. The insurance can be taken by the policy holder insuring the remaining balance of their mortgage over the term left on the mortgage. As the name of the policy suggests the amount that you insure, which your loved ones would get back, would decrease in line with the mortgage balance as you pay off the mortgage each month. If you outlive the policy then the mortgage will be paid up and so no payment would be made. If you should pass away at anytime during the term of the life insurance your loved ones would get the amount left on the mortgage at the time of your death.
The cost of life cover would take many different factors into account. One of the things that will set the premiums is of course the amount you choose to insure. Your current age will also be taken into account when you take on life insurance as will any ongoing medical conditions. If for example you suffer from diabetes or asthma then you could expect to pay out more in premiums for life insurance. Your family history will also be taken into account and any illnesses taken into account. If you are seen to have a job that is dangerous then you could also expect to pay out more for your insurance. The same would apply to if you took part in any dangerous activities which could include such as flying and mountain climbing.
Of course mortgage life cover would only provide your loved ones with financial security in the event of your death for your mortgage. If you wanted to leave your family financially secure so they would have a sum of money in the event of your death to be able to maintain their way of life in general and any other outgoings they might have then you would need to give some thought to taking out a different form of life insurance. You might want to give some thought to taking out term assurance or whole of life insurance. Term insurance could be taken by choosing how much cover to take and how many years to take it over, if you passed away during this time your loved ones would receive a lump sum payment. If you outlived the policy it would expire and no pay out would be made. Whole of life can be taken by choosing how much life cover is needed and as long as you continue to maintain those payments your family would receive payment upon your death.
David Thomson is Chief Executive of BestDealInsurance an independent specialist broker dedicated to providing their clients with the best insurance deal on their home insurance, car and life insurance.