It’s a question of English language phrasing – is it “life insurance” or “life assurance” ?? When talking about the cover one has to take when getting a mortgage for a house the answer is both phrases are correct. Whilst life insurance is more relationally correct (relating to the area of insurance as a whole), life assurance means that’s one’s mortgage debt is assured to be paid in the case of death. In truth, life assurance / insurance is a widespread scam.
Of course, life assurance / insurance is just another product invented by insurance and mortgage companies to cost you money. It’s a product that takes money from you and gives it to them. Life insurance has other cynical and humorous definitions too – like this one from the Urban Dictionary. Interestingly there is no similar definition for life assurance.
Mortgage lenders will only grant you a mortgage if you take out a life assurance insurance product. The official reason they do this is answered by the following question “If you die and you still owe us money on your mortgage who’s going to pay it?”, the more accurate answer, accurate because so many people actually get the the end of their mortgage term without dying, is that the make money from it. In the grand scheme of things, life assurance insurance is little more that a money making exercise on behalf of insurance companies, in other words, it’s a scam