Debts are inherited in the same way assets are. If you or your partner dies while still owing money on the mortgage the lender could ‘call in' the loan with the view to selling it to recover their costs. Any surviving spouse, partner or family would then need to re-finance the debt themselves, in order to avoid a mortgagee sale. Often the survivor's ability to do this is compromised by the fact they are receiving only half (or possibly less) of the household income they were prior to the death. If the property is repossessed in this way a financial loss is suffered simultaneously with a personal one.
Life insurance can provide a lump sum payment when you die and is essential for those with family or business commitments, mortgage debt or those who wish to provide an inheritance for children. Life insurance allows your family to cope financially in the event of your death. It provides for the living - for family and loved ones left behind and can ensure that should you or your partner die your debt is repaid, leaving the remaining party with one less thing to worry about.
Consider the Life Insurance options available on our InsureMe website.