Life Insurance is an insurance product where you agree to make a monthly payment to the insurance company in return for a lump sum payment to your family should you die. In most cases, you pay a monthly amount over a set time-frame (20-30 years typically) and the life company agrees to pay your family an agreed amount should you die during this time-frame. This is known as term insurance.
They can use this lump sum to pay off bills or the mortgage, and it could give them an income when they need it most. You can choose to take out life cover by itself, or as part of a broader life policy, providing other benefits such as specified illness cover.
Have you reviewed your mortgage protection?
For the reasons outlined above, mortgage protection is usually a requirement of getting a mortgage. However, because mortgages tend to be very long term arrangements, it can often get overlooked or forgotten about. Therefore it’s a good idea to periodically review your mortgage protection arrangements. You may even save some money!
Talk to one of our financial advisors to find out the best way to protect your mortgage.