Are you looking for protection of your family but you are unsure of what you need? Life assurance is a form of insurance providing the payment of the specified sum to the beneficiary on the death of the policy holder. Mortgage life assurance is also called as mortgage protection. The assurance scheme will pay you when you are unable to work due to illness. So you can make sure that your spouse and your dependants need not worry about the monthly repayments of the mortgage. It ensures that your property will remain with you regardless of your unexpected death.
There are two main types of mortgage life assurance: one is decreasing term that will pay out only the money that is left to be paid. The other one is level term which pays out the lump sum of the money. Deciding to buy the mortgage depends on the need whether you want the mortgage to pay off when you are not in a situation to continue your work. If you feel that your partner can cope up with the full mortgage then no need to get your mortgage. But if you want someone to take the ownership of the full property then life assurance is worth considering.
Life policy are legal contract in which the terms of contract describe the limitations of the insured event. Before choosing the type of insurance policy you need have a complete analysis of the policy type. There are four main types of life insurance.Life insuranceTrauma insuranceIncome protection insuranceTotal and Permanent Disablement (TPD) insurance
Life insurance: This is commonly referred to as death cover. Life Insurance is used to cover the time remaining until you plan to retire or no longer have others relying on your income. The money will be paid earlier only after the diagnosis of the terminal illness.
Trauma insurance: This is called as critical illness insurance. This scheme will pay you the agreed lump sum money when you suffer from serious medical conditions that are covered in the policy. The types of conditions covered will vary from insurer to insurer.
Income protection insurance: If you are unable to work due to illness or injury this scheme will return you with 75% of the monthly salary. The own occupation definition in the TPD policy lets you to claim money when you are permanently unable to work in the current occupation. Any occupation means that you are eligible if you are unable to work any kind of job.
Total and Permanent Disablement (TPD) insurance: Total and permanent disablement (TPD) pays a lump sum of in the event you become totally and permanently disabled and are not able to work again. This also helps you to cover the living expenses.