Mortage paid after death

carlyr874

Hi - I know this probably sounds like a stupid question, but I've managed to get myself confused..

What sort of insurance policy do I need to make sure that the mortage is paid in full if either myself or my husband dies? Or is that part of the mortgage?

Thanks for reading, I hope you can help me! x

p00hsticks

That's 'mortgage life insurance' or 'mortgage term assurance'.

For example, here's details of what Legal & General offer ( just one providers details picked at random)

http://www.legalandgeneral.com/life-cover/life-insurance-online-mortgage-life-insurance/mortgage-life-insurance.html

unite79

If the mortgage is a repayment Mortgage, you would need Decreasing Term Assurance - If Interest Only you need Level Term Assurance.

sdooley

Life insurance.

This was included in old endowment mortgages but that didn't make them good value. Repayment mortgages need seperate life insurance. You can get a policy on a reducing balance basis (i.e. less cover as you gradually pay off the mortgage) but you may find it is as good value to get term insurance which pays out the full amount whether or not you have paid down the mortgage.

Equally important, what if one of you has a critical injury?