The Importance Of Mortgage Life Insurance

The Importance Of Mortgage Life Insurance



The importance of​ mortgage life insurance
Let’s face it​ – mention things mortgage life insurance – in​ fact anything personal finance related - and we all know that it​ is​ as​ dull as​ dishwater .​
However,​ without things like mortgage life cover - life could be a​ lot harder financially.
So,​ what is​ mortgage life insurance and what is​ so great about it?
In a​ nutshell,​ in​ the​ event of​ you​ or​ your partner dying,​ mortgage life insurance can mean that the​ difference between keeping a​ roof over your head or​ ending up having your home repossessed – a​ frightening thought.
And while many of​ us find organising something like life insurance a​ sombre business as​ it​ makes us face our mortality,​ it​ is​ the​ fair and right thing to​ do for your partner and any next of​ kin to​ make sure that your finances are in​ order in​ the​ event of​ your death .​
So why do you​ need mortgage life insurance cover? a​ mortgage life insurance policy runs for a​ fixed policy term – most people take it​ put to​ run concurrent with their mortgage .​
Should you​ die before the​ end of​ the​ term period,​ the​ policy can help pay off outstanding balance of​ the​ mortgage on​ your home .​
This will be in​ the​ form of​ a​ cash sum.
This means that your dependants will not have the​ financial worry of​ trying to​ find the​ mortgage repayments in​ the​ event of​ your death .​
Neither will they have to​ worry about selling up and maybe downsizing in​ order to​ keep a​ roof over their heads – the​ last things that you​ would want to​ put them through.
The good thing about mortgage life insurance is​ that you​ only pay for the​ cover that you​ need – so as​ the​ amount outstanding on​ your mortgage decreases,​ you​ are only paying out for the​ level of​ cover you​ require.
Mortgage life policies are available on​ a​ single or​ joint life basis .​
If you​ have a​ joint life policy,​ the​ amount is​ paid out on​ the​ first claim only .​
You can decide how long you​ want the​ policy to​ run for – and as​ we mentioned before,​ most people have it​ to​ run concurrent with their mortgage – and in​ most cases you​ can have additional benefits such as​ critical illness cover for an​ additional premium.
With critical Illness benefit the​ policy pays out either on​ death or​ on​ the​ diagnosis of​ a​ specified critical illness (such as​ certain cancers,​ triple artery bypass) - whichever occurs first .​
Check with your chosen insurance provider as​ to​ what illnesses are covered,​ as​ they can vary from insurer to​ insurer .​
If the​ policy is​ paid out before the​ end of​ the​ policy term,​ it​ ceases .​
And if​ the​ policy is​ in​ force at​ the​ end of​ the​ term,​ it​ will have no cash in​ value .​
If you​ are looking for mortgage life insurance,​ then do shop around and do not automatically accept the​ first quotation you​ get .​
Premiums as​ well as​ terms of​ the​ policy and other benefits can vary wildly from provider to​ provider and you​ could be surprised just how cheap mortgage life insurance can be,​ without any compromise on​ cover.




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