Before working within the mortgage and protection industry, this is a misconception that our administrator, Beth, had about life insurance and mortgages. Many people have asked our advisers the same question and, in this article, we’ll work to demystify this common source of confusion.
However, there is a caveat to this: Many people take out life insurance when they take out a mortgage so that they can be sure that, if they were to pass away, their mortgage would be taken care of. It’s simply one less thing for your loved ones to think, or worry, about at a tearful time. Indeed, it may be the only way they can afford to remain in the property.
It should be noted that a Life Insurance pay-out doesn’t necessarily have to be used to pay off a mortgage, although many choose to do this, it can be used as your loved ones see fit.
In essence therefore, whilst it isn’t mandatory to have life insurance when you take out a mortgage, it is a good idea.
Your adviser can discuss what type of life protection best fits your needs and then search the market for the best life insurance policy for you. We work with all the main insurance Companies, from AIG to Zurich, to find the most suitable policy for your needs.
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