Life Cover

Protect Your Home and Loved Ones with Life Cover

When you're taking on a mortgage, whether it's for your first home or your forever home, the last thing you want to worry about is what will happen if the unexpected occurs. Life cover, or life insurance, can give you peace of mind knowing your family and home are protected, even if you’re no longer around to provide for them.

At Sunnybank Financial Solutions, we understand that your home is more than just a place to live — it’s an investment in your future and the security of your loved ones. That’s why we strongly recommend life cover for customers who are considering a mortgage, especially if they have financial dependants.

What is Life Cover?

Life cover is a type of insurance policy that pays either a lump sum or a monthly benefit to your beneficiaries if you pass away unexpectedly. When tied to your mortgage, it can ensure that your loved ones are not left with the burden of your mortgage payments during a difficult time. With life cover, the balance of your mortgage is paid off, so your family can stay in their home without worrying about the financial strain of maintaining the mortgage payment at such a difficult time.

Why is Life Cover Important for Your Mortgage?

1. Ensure Your Family’s Financial Security

Without life cover, your family could be left facing mortgage payments they may not be able to afford if you were no longer around to contribute. Life cover ensures that, in the event of your death, the mortgage is paid off and your family’s financial future is secured.

2. Peace of Mind for You and Your Loved Ones

Taking out a mortgage is a significant financial commitment. Life cover gives you peace of mind knowing that no matter what happens, your family will not have to bear the financial weight of the mortgage alone.

3. Protect Your Home and Your Legacy

Your home is more than just property; it’s where memories are made. By having life cover, you ensure that your family can stay in the home you've worked hard for, protecting your legacy for future generations.

4. Tailored to Your Mortgage Needs

The amount of life cover you need will depend on the size of your mortgage, your age, and your family’s needs. We can help you choose the right level of life insurance that suits your own individual circumstances, ensuring adequate protection is in place.

Types of Life Insurance for Mortgages

There are several types of life cover available, depending on your needs:

• Level Term Life Insurance: This policy pays a fixed sum throughout the life of the mortgage. It is ideal for those with an interest only mortgage.
• Decreasing Term Life Insurance: The payout decreases over time, in line with the decreasing balance of your mortgage. This is typically cheaper and ideal for repayment mortgages.
• Joint Life Insurance: For couples, joint life insurance ensures that if either partner passes away, the mortgage is paid off, providing financial relief for the surviving partner.

Benefits of Life Insurance for Mortgage Holders

1. Affordable Premiums – Life cover premiums are often lower than people think, so it’s always good to get an idea of the cost before making any decisions.
2. Flexibility – Choose the type and amount of cover that best suits your needs and budget.
3. Tax-Free Payouts – Most life insurance payouts are tax-free, which means your beneficiaries receive the full amount.
4. Quick Access to Funds – In the event of a claim, your beneficiaries can quickly access the lump sum payout, helping them cover the mortgage without delays.

What Happens if You Don’t Have Life Cover?

If you don’t have life cover and something happens to you, your family could be left with the responsibility of continuing mortgage payments. In worst-case scenarios, your home could be at risk of repossession. Without life insurance, your loved ones may also struggle with the emotional and financial consequences of your passing.

How We Can Help You Find the Right Life Cover

At Sunnybank Financial Solutions, we make securing the right life cover for your mortgage easy. We will guide you through your options, ensuring that you get the best protection for your home, your family, and your financial situation.