Having a mortgage is a big responsibility, particularly when you consider how much debt you’re taking on. This is where life assurance can play a major part in securing the financial future of your family and provide the peace of mind of knowing that if the worst were to happen, your family would be financially secure and your mortgage paid off. It’s not a decision you should delay; as you get older the premiums increase in cost.
Protection for your needs
Term life insurance policies run for a fixed period – such as 5, 10 or 25 years – and pay out if you die during the term of the policy. There are various forms of cover, including level term insurance, where the cover remains at a constant level throughout the term of the policy, or decreasing term insurance where the level of cover gradually reduces over the term. The latter is often taken out with a mortgage, with the sum assured reducing in line with the outstanding amount of the mortgage.
Whole-of-life policies provide cover that lasts a lifetime. This type of policy doesn’t normally have an end date, so premiums are paid until you die, at which point the policy pays out (sometimes premiums end at a certain age, say 80, but cover continues until death).
As with all insurance policies, conditions and exclusions will apply.