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Mortgage Term Assurance

Mortgage term assurance, also known as mortgage life insurance or mortgage protection insurance, is a type of life insurance that Austin Friars can help you with, specifically designed to provide financial protection for your loved ones in the event of your death during the term of your mortgage. It offers a safety net to ensure that your mortgage debt is covered, allowing your family to remain in the home without the burden of mortgage payments if you pass away.

Here's how mortgage term assurance typically works:

  • Coverage Period: Mortgage term assurance is purchased for a specific term that aligns with the duration of your mortgage. For example, if you have a 25-year mortgage, you can choose a 25-year term policy through Austin Friars.

  • Death Benefit: If the insured person (the homeowner) passes away during the policy term, the policy pays out a lump sum, known as the death benefit, to the beneficiaries. This money can be used to pay off the outstanding mortgage balance, ensuring the property remains with the family.

  • Level Coverage: In most cases, the coverage amount remains constant throughout the policy term, and Austin Friars can help you find the right level of coverage to match your needs, providing consistent protection for the mortgage.

  • Decreasing Coverage: Alternatively, some mortgage term assurance policies offer decreasing coverage, which means the death benefit decreases over time in line with the outstanding mortgage balance. This type of policy is often used for interest-only mortgages, where the debt decreases as mortgage payments are made.

  • Premiums: The cost of the premiums for mortgage term assurance depends on various factors, including the coverage amount, the length of the term, the insured person's age, health, and lifestyle. Austin Friars can assist you in finding the most suitable and affordable policy.

  • Renewal or Convertibility: Depending on the policy, some mortgage term assurance plans may offer options for renewal or convertibility. Renewal allows you to extend the coverage beyond the initial term, while convertibility enables you to convert the policy into a permanent life insurance policy without the need for a new medical exam, and Austin Friars can guide you through these options.

Mortgage term assurance is an essential financial tool for homeowners who want to protect their family's home and financial well-being. Austin Friars can help you navigate the process and find the right coverage for your circumstances, offering peace of mind and expert guidance throughout the journey. As with any insurance product, it's important to review the policy details and consider your family's specific needs when selecting mortgage term assurance. Seeking advice from a qualified financial advisor at Austin Friars can help you make informed decisions and secure the best protection for your loved ones.