Life insurance cover guarantees that your family will be protected if the worst happens while you still have a mortgage (or any other outstanding liabilities as covered in the policy). If you die within the set term, a tax-free lump sum is paid out to clear your outstanding mortgage balance.
Taking out life insurance may seem an unappealing thought, especially when planning for your future, but if something does come out of the blue you can be assured of your family’s security in your home. Life insurance can also ensure that any debts you may have, and your funeral costs, are not passed on to your nearest and dearest.
Many life insurance policies are also exceptionally flexible in terms of adjusting to the policyholder’s needs. The death benefit may be decreased at any time and the premiums may be easily reduced, skipped or increased.