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Life Insurance moves into focus as mortgages become difficult

The rising cost of mortgages and the lower availability of credit for borrowers with tainted credit records has brought life insurance more into focus as families worry about the security of their homes. No-one wants to loose their home and anything that puts that security in jeopardy moves quickly into people's priorities.

Anyone who is unable to re-finance their mortgage or suffers difficulties in making mortgage payments could face repossession. If a family paying a mortgage on their home is unfortunate to loose their main income provider, then without some form of life insurance cover, the need to move home is a likley outcome.

Even if the remaining adult or parent is able to afford mortgage payments, with a relaiable form of income, lenders are unlikely to advance a loan against the property. That income is usually provided by a salary, but payouts from a life policy are equally valuable. In fact a claim against a life policy could be enough to pay off the outstanding mortgage if it was setup to do so. Some things to consider:

Can you get a mortgage without the income of either adult in a joint ownership situation?

Will the loss of an income provider generate additional new costs as well as the loss of that income?

Can you afford to take out a life policy now that will cover the remaining mortgage amount in the event of a claim?

Will remaining in the same property be important to you in such circumstances?

Will the remaining household income be sufficient to pay current household expenses?

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