Mortgage life insurance is a plan that protects heirs if the borrower dies or fails to return the money, owing to the mortgage payments. Unlike a traditional life insurance plan that the heir doesn’t get paid unless the borrower dies, the mortgage life plan allows the repay while the mortgage itself is still in existence. If you are putting some assets as collateral, get the best life insurance policy to cover the mortgage. This is different from mortgage protection insurance that protects the lender. The following is a brief discussion about the features of this insurance.
How to choose a mortgage life insurance
Before buying a mortgage life insurance, you should find out the terms, costs, and benefits of the policy. The policy generally has two lifespans to consider – the lifespan of the policyholder and the lifespan of the mortgage.
There are also two types of mortgage life insurance - decreasing term insurance and level term insurance. In the former plan, the size of the policy gradually decreases with the outstanding balance of the mortgage until both reach zero. Meanwhile, the size of the level term plan doesn’t decrease. You will need to evaluate which coverage will do you a favor.
Benefits of mortgage life insurance
The plan is convenience and it doesn’t need other conditions like credit score or medical record to buy a policy. Mortgage life insurance is the best option for financially stable if you are denied life insurance because of medical insurance. Your family can utilize all benefits from your life insurance policy for bills and other expenses.
No comments:
Post a Comment