When it comes to life cover there are many different choices to make. One of the main types of life cover is called mortgage life cover. This is a simple life cover that allows you to pay off the mortgage to your home in the case of your death.
There is no question that death is hard on everyone affected, but it can be especially hard on the family members that are responsible for paying off your mortgage and other bills after you pass on. It is a worry that shouldn't be left with your spouse or dependents that may not have the money to pay off your mortgage. Not only could your death leave them with a huge burden, but if there are no savings or life cover in place, it could mean they could lose their home.
Mortgage life assurance pays off the remaining debt on your mortgage payments if you die within the life of the mortgage. As the years go on, the amount paid is decreased as your outstanding mortgage debt decreases. For example, if you die within the first few years of the policy the sum paid out will be significantly higher than if you died in the last year of the mortgage.
Mortgage life insurance is not the same as traditional life insurance because the payoff amount paid is specifically attached to your mortgage so there won't be additional monies paid to surviving family. It is however definitely worth having because it is not that expensive and can be combined with whole or term life to make sure your family is better covered in the case of your death.
Paul Eden is a mechanical engineer who recently purchased Life Cover and Critical Illness Cover to protect his family. He owns and maintains Cheap Life Cover [http://cheaplifecover.org], a resource for those investigating similar purchases.
There is no question that death is hard on everyone affected, but it can be especially hard on the family members that are responsible for paying off your mortgage and other bills after you pass on. It is a worry that shouldn't be left with your spouse or dependents that may not have the money to pay off your mortgage. Not only could your death leave them with a huge burden, but if there are no savings or life cover in place, it could mean they could lose their home.
Mortgage life assurance pays off the remaining debt on your mortgage payments if you die within the life of the mortgage. As the years go on, the amount paid is decreased as your outstanding mortgage debt decreases. For example, if you die within the first few years of the policy the sum paid out will be significantly higher than if you died in the last year of the mortgage.
Mortgage life insurance is not the same as traditional life insurance because the payoff amount paid is specifically attached to your mortgage so there won't be additional monies paid to surviving family. It is however definitely worth having because it is not that expensive and can be combined with whole or term life to make sure your family is better covered in the case of your death.
Paul Eden is a mechanical engineer who recently purchased Life Cover and Critical Illness Cover to protect his family. He owns and maintains Cheap Life Cover [http://cheaplifecover.org], a resource for those investigating similar purchases.