Does Your Life Insurance Cover the Mortgage?

By Vicki Coleman

One of the simplest ways to protect your home is with a Life Insurance policy, covering your mortgage payments should you die during the policy term.

We understand that a home is so much more than just a house

Often, people take out life insurance based on their priorities at that moment in time. That is why it’s common that when someone purchases a home, they will want to protect it, and often take out a life insurance policy as a form of protection.

Over the last couple of years, our homes have become so much more than just a house. They have become offices, gyms, pubs, school's as well as everything in between, that's why it is more important than ever to protect your home as much as possible.

Many people don't know that one of the simplest ways to protect your home, is with life insurance.

What is Mortgage Life Insurance?

Mortgage life insurance is simply a life insurance policy that can be used to pay off your mortgage, should you die during the policy term. It can help to ensure that your partner or dependents don't need to worry about the monthly repayments. Meaning the house you’ve worked so hard towards making a home, can remain the home for those you leave behind.

Some things to consider when it comes to Life Insurance and your home:

  • Could your loved ones afford the mortgage without your income?
  • Would your family be required to downsize or move to a new area?
  • What effect would this have on your family's lifestyle?
  • Do you have any dependents?

Why Should I consider Mortgage Life Insurance?

A Home is most likely to be the biggest financial purchase of a person's life, so it's only natural that you would want to protect it.

Sadly, not everyone has the financial plans in place for when a loved one passes and there can be lots to sort out including any mortgage debt. If you die and have mortgage life insurance, then this could be used to repay the mortgage and help to reduce some of the pressure on your family at a difficult time.

In simple terms, if you’re looking to protect your home for your loved ones if you were to pass and the mortgage hasn’t been fully paid off, then mortgage life insurance is a way to do it. With the mortgage paid off, your loved ones could continue to live in the home and be relieved from some of the financial stress they could face if you were to pass.

How does Mortgage Life Insurance work?

Mortgage life insurance is a form of insurance specifically designed to protect a repayment mortgage. If the policy holder were to pass away whilst the policy was in place, the policy would pay out a capital sum covering the mortgage payments should they die during the policy term.

What if you already have a Life Insurance policy in place?

Unfortunately, life doesn’t come with a crystal ball and your circumstances could, however, change. You may move to a bigger home or have more children; in which case your cover may not meet your new needs. That’s why, even if you already have a policy in place, it’s worth reviewing your life insurance on a regular basis. QuoteSearch can still help if you have cover.

If you’re looking for a free online quote comparison for life insurance, then get started today. If you’re unsure about which policy is right for you, we can even help get you in touch with an expert to discuss your circumstances.

Get a Life Insurance quote now