Life Insurance is a financial investment that protects your loved ones in case you die, but what connection does it have with mortgages.
While buying a house is a big financial and emotional commitment, it also leaves you with a huge outstanding mortgage which can sometimes even be the 100% cost of the house. Life insurances ensure that the burden of this mortgage which can take up to 30 or even more years of payment does not fall on your loved ones in case anything happens to you before the entire cost of the house is paid off. The mortgage will be covered by the benefit received from the life insurance policy.
What type of life insurance can you avail?
There are two factors that you have to consider while availing life insurance to cover your mortgage.
- Whether you are investing in your house independently or if you have a partner who has shared ownership of the house.
- If your concern is just the mortgage or you want to provide a little something for your loved ones apart from paying off the mortgage.
Depending on your choices you have the following options:
- Single Life Insurance
Single life insurance has only one policyholder and the insurance pays out after his or her death after which it automatically terminates.
Depending on the cover you want there are two choices offered under single life insurance:
- Single Level Life Insurance
- Single Decreasing Life Insurance
- Joint Life Insurance
While most couples invest in a house together and the mortgage is shared by the partners, they are often advised to invest in joint life insurance that will pay the mortgage in case anything happens to either one of you.
Depending on the cover you want there are two choices offered under joint life insurance:
- Joint Level Life Insurance
- Joint Decreasing Life Insurance
Factors your insurance cost depend on:
- Age – older clients are likely to pay more
- Medical history- clients with complicated medical history may have to pay more
- Level of cover- the cost of your insurance will vary depending on the level of cover you choose.
- Lifestyle- if you indulge in certain harmful habits like smoking etc.
We would recommend you to talk to one of our advisers for life insurance quotes.
Any quote that your adviser provides you with will take into account your circumstances, your medical history, as well as your budget!
Call 011-3733-4610 – Monday to Thursday from 11.00 to 19.00 and on Friday between 11.00 and 16.00