Mortgage life Assurance is designed to pay off your mortgage balance in the event of your death. This means that should the policy holder die, the policy will pay off the outstanding mortgage balance. If you have a mortgage and financial dependants, you need mortgage life assurance. This type of policy will pay off your remaining mortgage balance in the event of your death.
Should you die during the term of your mortgage, you can’t just assume that your spouse or partner can just carry on making the mortgage payments even if they can afford to do so.
Unless the mortgage was arranged in joint names, the lender could formally demand that the mortgage is repaid.