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Does Life Insurance have to be associated with a mortgage?
No it does not. Many policies are used to provide additional financial security for the family.
Hot Topics
- Life Insurance - why do you need it?
- You may want Life Insurance to provide some financial protection for the family or to cover the payment of an Interest Only Mortgage.
- What do you need to know about Life Insurance?
- Life Insurance pays out a tax-free lump sum if you die; there is no investment value.
- Should you consider Mortgage Life Insurance instead?
- Only if you have a Repayment Mortgage and want insurance cover for it.
- How long should you insure for?
- For mortgage protection purposes you should also insure yourself for the same number of years that are remaining on your mortgage. The initial sum insured should always equal the capital sum outstanding on your mortgage.
- Can you have different levels of cover on a joint life policy?
- Yes you can - but it may be better to buy separate policies.
Whilst there is no legal requirement to protect a mortgage with Life Insurance, it nevertheless makes great sense. The insurance is there to repay the mortgage lender if the mortgage holder were to die. Sometimes it is one of the mortgage lenders conditions that you take out Life Insurance to cover a mortgage.
Frequently Asked Questions related to the above topic.
Click below if you wish to read them: -
- You have a Repayment Mortgage. What sort of Life Insurance do you need?
- You have an Interest Only Mortgage. What sort of Life Insurance do you need?
- What is Life Insurance
- Which optional extras are important ?
- Do you have to buy your Life Insurance through your mortgage lender or mortgage broker?
- What factors can add to the price?
- Go to menu of Frequently asked Questions about Life Insurance
- Go to menu of Frequently asked Questions about Mortgage Life Insurance
- Go to menu of Frequently asked General Questions