Once you’ve exchanged contracts on your new house purchase you are liable
for that property and the mortgage debt. This may well be the biggest
investment you make in your life but have you considered what would happen
should you die within the term of your mortgage; how would your partner
cope on their own trying to cover the monthly mortgage payment as well
as the other bills? And if you have young dependents and you have no mortgage
protection in place the risk increases. A worse case scenario would be
debt and your partner potentially having to hand the property back to
the bank. Where would your family live if this happened?
These are questions you should seriously consider when you take out your mortgage. It is a sad fact that many people take a risk and think this won’t happen to them but what if it did? Being able to pay off the mortgage would mean security for your family at a time when the last thing they should be worrying about is how to keep a roof over their heads.
With mortgage protection in place, your dependents need not worry about repaying the mortgage if you die because it is designed to pay off your remaining debt within the period of the policy.
You may also wish to consider taking out Critical/Serious Illness
cover to complement your policy. As with life cover, it will pay out a
lump sum if you are diagnosed with a critical illness covered within your
terms (please check the Key Features and policy documentation for definitions
of illnesses covered and any severity payments). This can be used to help
fund any changes you may need to make to your lifestyle because of that
illness, be it converting your home to ease mobility, private care or
you may wish to pay off your mortgage or reduce your financial liabilities.
At a distressing time, having the financial burden eased can be one less
thing to worry about.
This is not a savings or investment product and has no cash value unless a valid claim is made.