Life Assurance
Aims to repay the mortgage in full should the borrower die before the end of the mortgage term.
The Financial Risks....
Without you having life cover to repay the mortgage in full, your estate may continue to be liable for the mortgage repayments.
It may take several months or longer for your estate to be finalised, during which period, if the mortgage repayments are not maintained, there is a significant risk that your home may be repossessed. All this at a time of upheaval and distress.
You are strongly advised therefore to both take and maintain life cover to repay your mortgage and other debts in full should you die before they are fully repaid.