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I’m a Single Homeowner in Hull, Should I take out Life Insurance?

You may not be married, nor do you have any intentions in the near future to settle down with kids, but that doesn’t mean you wouldn’t benefit from looking into life insurance in Hull. Even for those of you who are single homeowners, there are still plenty of completely valid reasons to take out life cover.  

Having a life policy in place can be a huge support to your family in dealing with any debts that may arise, such as outstanding mortgage payments, if something untimely were to happen.

How does life cover affect your mortgage? 

Generally speaking, the purpose of life cover is to cover any mortgage debts. The policy will usually be set up to pay out a lump sum, equivalent to the cost of the current home loan, should the policy holder (the person with the life cover) pass away whilst still making monthly mortgage payments.

If you are living with a partner or have had any children, the cover might even get extended as a means of providing your dependants with an income boost to cover any living costs for the time being.

The extra protection here likely won’t be necessary for single cover applicants, but taking out some insurance to cover your mortgage is still something we believe is worth doing.

Paying Back The Mortgage Loan Amount

If a single homeowner dies at any point prior to their mortgage getting paid off, their bank or building society can look to pay back the mortgage loan from their late customer’s estate, i.e., their collective belongings (accumulated assets is a term you might see used for this), such as a car or something else of worth.

In most cases we find that in order to pay off the remaining mortgage balance, the property will get sold at auction. If the home has fallen into negative equity, the lender has the right to demand that the estate must make up the difference.

Alternatively to this, the lender can demand that the property be sold and any surviving family members are not able to make up any shortfall. Making things worse here, if the probate process happens to be drawn out (the probate is the time of which the individual’s estate is sorted out), the lender can actually continue to add interest charges, increasing the total amount to be paid. Immoral? Potentially. Illegal? Unfortunately not. 

Taking out life insurance will help to prevent these problems from occurring. 

Speak With One of Our Mortgage & Protection Advisors in Hull

If you are looking at your options for potentially taking out life cover at some point, please get in touch and speak to one of our dedicated protection advisors in Hull. If you have any plans of becoming a first time buyer in Hull or you are already a homeowner with a change in circumstances, it makes sense financially and personally to get on top of it now rather than leaving it too late.

A life insurance policy means that an inheritance can be left to children or grandchildren, regardless of if there is any equity left in the home at the point of passing. 

Hullmoneyman.com & Hullmoneyman are trading styles of UK Moneyman Limited, which is authorised and regulated by the Financial Conduct Authority.
UK Moneyman Limited is authorised and regulated by the Financial Conduct Authority.
UK Moneyman Limited registered in England, registered number 6789312 and registered office 10 Consort Court, Hull, HU9 1PU.

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