Life Insurance and getting a mortgageDiscover the importance of Life Insurance cover when taking out a home mortgage.
Do I need Life Insurance to buy a house?
A key consideration for couples who are married or live together is that as their family grows, they may need to upgrade their home or relocate to a bigger property. These changing circumstances provide a great opportunity to evaluate your existing Life Insurance policy to see if you should top up the amount of cover.
This process is simple with NobleOak, with the Future Increases Benefit feature with our Term Life Cover. If you were to increase your mortgage, on application to us, your cover can be increased by $100,000 (or 20% of the original sum insured, whichever the lesser) without the hassle of providing any updated health or medical information.
When committing to buying a new home, it’s important to cover yourself for all eventual outcomes, including how your family will make mortgage repayments if you suffer a significant illness or injury, or pass away. NobleOak’s life insurance products offer a way to reduce the risk of this potential burden hindering your family’s future should the unexpected happen. Buying Life Insurance to help cover mortgage payments can be a straightforward process that your loved ones may thank you for in years to come.
Is Mortgage Protection the same as Life Insurance?
Although these terms are often confused with one another there is, in fact, a clear distinction. Mortgage Protection Insurance (MPI) has one purpose: to help you pay off your mortgage. The payments will stop once your mortgage has been paid off in full. In contrast, a Life Insurance payout can be used in any way you (or your beneficiary, depending on the cover and the event) see fit, whether that is towards a mortgage or other regular outgoings.
Typically, an MPI benefit will reduce as your mortgage decreases. Life Insurance cover usually increases with the cost of living, depending on the type of cover you have.