Life insurance could help family pay the mortgage

Sep 28, 2011

Life insurance could help a family pay for their mortgage.

Sainsbury Financial wrote in the International Business Times that while buying a house could be the most expensive thing someone does, buying life insurance could be one of the more important things they do.

"It could provide a lump sum to cover the cost of mortgage repayments if you should die before you've finished paying it off," the article said. "Yet thousands of homeowners with mortgages seem to be ignoring this fact by having either no life cover or an insufficient life insurance policy."

The financial group said life insurance is essential for anyone taking out a mortgage who has dependents. If the policyholder passes way, the people who relied on them can get the security they need to still be able to live in the house and pay the mortgage. Sainsbury said life insurance could also be used to pay the inheritance tax.

The Everything Finance Blog says if someone is unable to qualify for term life insurance due to health, mortgage life insurance can help pay off the mortgage for loved ones after death. The blog said it is an option that will help give financial protection to loved ones.

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