Even if you are not married and aren’t looking to settle down and have kids at any point in the near future, it is likely that you will still benefit from taking out life insurance in Coventry. No matter your personal circumstances and life choices, if you are a single homeowner, there are still plenty of justifiable reasons to take out life insurance.
Having a life policy in place can be a big support to your family in dealing with any apparent debts after your passing, such as any remaining mortgage payments that need to be made.
Typically, the purpose of taking out life cover is to cover the costs of any mortgage payment debts. The policy will usually be set up to automatically pay out a lump sum, equivalent to the mortgage cost, in the event that the policy holder (the person with the life cover) passes away whilst still having outstanding monthly mortgage payments.
If you are living with a partner or you have children, the insurance might even be extended into an income boost provided to your dependants, in order to cover any living costs.
The reasoning for that particular extra protection may not be necessary for single cover applicants, but taking out some insurance to cover your mortgage is still worth doing to ensure your payments are securely paid off when you’re gone.
If a single homeowner passed away before their mortgage balance has been paid off, their bank or building society can look to pay off that balance from their late customer’s estate, i.e., their collective belongings (accumulated assets is a term people use for this). This will be something of worth they can sell, like a car.
Quite often when these cases arise, we find that the property will get sold at auction in order to pay off the remaining balance. If the home happens to fall into negative equity, the lender has every right to demand that the difference must be made up by the estate.
As an alternative to this, the lender can demand that the property be sold with any surviving family members not being able to make up any shortfall on the balance. As if this wasn’t bad enough, if the probate process is drawn out (the probate is the period of time where the individual’s estate is handled), the lender can actually continue to add interest charges, increasing the total amount of the balance that needs to be paid. Morally questionable, but unfortunately not illegal.
Taking out life insurance will help protect your family and/or estate from these problems from occurring.
If you are looking at the options you have for taking out life cover in the future, please get in touch and book yourself in for a free consultation with one of our dedicated protection advisors in Coventry.
No matter if you have plans of becoming a first time buyer in Coventry or are already a homeowner, we feel this is something better sorted now than left too late.
A life insurance policy can also mean that if you have any children or grandchildren, they can be left some form of inheritance, regardless of if there is equity in the home.