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Mortgage Life Insurance offers a policy that covers the mortgage repayment if the policyholder were to pass away. Your spouse or partner will subsequently not have to foot the bill themselves. A sum will be paid out, covering the full cost of your outstanding mortgage.
What is the difference between Life Insurance and Mortgage Life Insurance?
You might be wondering if Mortgage Life Insurance is necessary if you already have a Life Insurance policy. Insurance policies can be tailored to suit your every need, and if your current policy does not cover your home while you are still paying it off, then the added protection of Mortgage Life Insurance will protect your family from the mortgage bills in the event you pass away. For the most part, Life Insurance only covers the income of the person who has passed, and not any other financial obligations.
Advantages of Mortgage Life Insurance
This type of policy has a number of advantages. As the bond reduces as you pay it off, so your premiums decrease, the policy can be cancelled at any point without a penalty fee, insurance providers will most likely not require you to take a medical examination in order to qualify, and if the policyholder passes away, the outstanding amount due will be paid directly to the bank without the responsibility being passed on to family members.
The only way you’re going to figure out if this is the right option for you is to compare policies and quotes for Life Insurance. Hippo.co.za instantly sources multiple quotes from a range of SA brands, so you can compare prices and benefits side by side and find the right deal for you.