You may think that you understand mortgage life cover and perhaps you do, however, you may find a quick skim of the following facts to be useful:
- the obvious principal advantage of mortgage life insurance is that it may provide you and your partner with the comfort of knowing that your joint home would be secured for the other, plus any family members living there, in the event of one of you suffering a premature death;
- should such an unfortunate event happen, your policy may typically pay off any remaining mortgage debt meaning that your property is secured for the loved ones left behind;
- yet there may be some other factors that you might also wish to keep in mind;
- for example, typically your mortgage provider may require to see evidence that you have obtained life assurance quotes and taken out mortgage life insurance in order to protect your interests, those of your family and also, frankly, their own. Should you fail to do so or subsequently cancel any insurance that you took out at the time you applied for your mortgage, you may be in serious breach of your mortgage terms and conditions;
- if you are seeking other forms of finance, some lenders may look to see evidence of your maturity and financial responsibility. Being able to show that your mortgage is fully protected by appropriate insurance, may be interpreted as one such indication;
- in the event of a shock such as the death of loved one, your family may be in no position to move into emergency income generation mode nor may they be particularly well equipped to start trying to deal with financial threats including those that may deprive them of their home. Having the peace of mind that comes with knowing that mortgage has been paid off and the roof is secure over their heads, may enable them to concentrate on grieving and eventual closure, leading to the continuation of their normal lives;
- you may also be able to secure a policy that would pay out in the event you were diagnosed with a terminal illness – something that may make things easier for you and your family to handle;
- additionally, some policies may allow the waiving of premiums in the event that you are diagnosed with a critical illness.
These might all be serious and compelling justifications for thinking more closely about mortgage life cover and its related benefits.