Mortgage Life Insurance - When to Get Mortgage Life Insurance
Buying a house can be one of the largest purchases to make in your lifetime. Paying this obligation may take you years to settle it. Your lender or creditor will probably suggest that you get mortgage insurance coverage, as a way to protect yourself with this financial obligation. Whether your beneficiaries use the life insurance proceeds for paying off mortgage or not, it is a sensible move to get you covered.
Mortgage Life Insurance is specifically designed to protect mortgage payments. Taking on a mortgage life insurance promises that mortgage payments to the property continues even when the home-owner becomes disabled, loses his job, or meets his untimely death. It is a way of protecting the family and giving them security in the event that something unfortunate happens.
In the event of death
Mortage Life Insurance guarantees that mortgage would be paid when you die during the term of the policy - Mortage Life Insurance is basically term insurance. Under this condition, the cash will be given to your beneficiary or to your lender. In repayment, your coverage decreases as your mortgage payments are reduced to the sum payable to your lender. Therefore, the loved ones you leave behind need not worry with completing your obligation to your lender.
In the event of Terminal Illness
Many mortgage life policies cover terminal illness. This means that the policy will cover your expenses and payments when you are not expected to live in more than a year. The claim is also given to your next of kin, or directly to the lender. This policy is paid out as soon as you are diagnosed with the terminal illness, even while you're still fighting it. This is a great help to your family in these stressful period. This coverage makes sure your obligations are covered in this most difficult time you and your family are experiencing.
In the event of Unemployment
Mortgage Life Insurance is also ideally a great help at a time when you are unable to hold jobs in case of accident, sickness or unemployment. This is the security that your mortgage life insurance provides, so that even if the times are hard, you will not be liable to lose your home to your lenders.
It is best to get covered as soon as you have purchased your property. This is an insurance that will surely protect your loved ones in the time of need.