Could I get normal Life Insurance to cover my mortgage?

If you have a repayment mortgage then you really need Mortgage Life Insurance.

Life Insurance pays a tax-free lump sum to you or your family if you die during the term of the policy. The proceeds from the claim can either be paid directly to your next of kin, or to your mortgage lender.

Most Life Insurance policies include Terminal Illness Insurance within the policy. Terminal illness insurance pays out if you are diagnosed with an illness from which your Doctor expects you to die within a year. Consequently you receive a payout immediately you are diagnosed - the insurance doesn’t wait for you to pass away. This provides essential financial peace of mind at an extremely stressful time.

If you have a Joint mortgage then make sure you get a Joint policy because either of you could die during the policy term, many mortgage lenders insist on this in any case.

For mortgage protection, Joint policies are generally written on first life basis - this means that if either of the policyholders dies or becomes terminally ill during the policy’s term, the mortgage will be fully paid off. Note that once the policy has paid out once, it terminates and no more claims can be made.

Also remember that Life Insurance policies have no investment value, and when the policy ends its term, that’s it - just like car insurance.

All insurance payouts are tax-free.

IMPORTANT:
If you want your mortgage repayments to be covered in case of you can't work because of sickness, accident or unemployment, then get Mortgage Payment Protection Insurance.

If you want your mortgage to be covered in case you contract a serious illness, you need Critical Illness Insurance.