If you or your partner dies with money still owing on the mortgage, the lender could “call in” the loan with the review of selling it to recover their costs. Any surviving spouse, partner or family would then have to re-finance the debt themselves and service the loan in order to avoid a mortgagee sale. Often the survivor’s ability to do this is compromised by the fact the household income has now been reduced substantially.

Life insurance can provide an essential lump sum payment for your dependents to take care of family commitments, mortgage debts or children’s inheritance.