If there is something in life thats the most uncertain, its life itself. And when you have liabilities, its your dependents that bear the brunt of this. Thanks to mortgage insurance, your home isnt one among the liabilities that your family will have to worry about in your absence.
For the uninitiated, mortgage insurance is a payment plan that takes care of the residual payment if you were to die or meet other unforeseen circumstances before the loan is repaid. You can either choose from a mortgage life insurance or mortgage protection insurance.
While mortgage life insurance covers you in event of a death, the protection insurance protects you if you were to lose your job or meet with an illness or injury.
Theres a lot of misconceptions about mortgage insurance, because of it a lot of people are shying away from buying mortgage insurance. This is largely because of the misinformation surrounding the concept.
Newspapers are full of stories where houses have been foreclosed because the breadwinner in the family either lost his job or his life. Rather than leaving liabilities that your family struggles to meet, its better to safeguard their interest by investing in mortgage insurance.
There are various options available for the applicant. You can choose to go for a single or joint coverage, choose to end it before the mortgage or have it run concurrent with the mortgage, and even opt to add a premium waiver where future premiums shall be waived on diagnosis of a critical illness.
You can also choose from plans that cover you for total and permanent disability up to the age of 70 and give you an assured sum upon diagnosis of disability that is permanent and total.
While everyone agrees on the benefits of the plan, there are a few things that the insurer needs to be aware of. This includes hidden charges, high premiums and difficulty in claiming the insurance. There is no dearth of insurers who understand only at the end of the cycle that theyve been taken for a ride.
Make sure that you choose a trustworthy insurance company that provides information about the policy in a clear and unambiguous manner. When it comes to choosing mortgage insurance, not all companies are alike. It certainly pays to shop around. There are plenty of websites that allow applicants to shop and compare prices offered by different companies.