Mortgage life insurance protects the mortgage repayment of a property in the event of death of the owner. If a person dies while the mortgage is still unpaid, there is always the risk of losing the house if the deceased’s heirs are unable to fulfill the mortgage loan obligations. Mortgage life insurance protects the interests of the family of the borrower in case of his or her death.
If you are the sole working member of the family or contribute a major chunk of the family income, it is important for you to ensure that your family is protected from losing the house in case of your death. Mortgage life insurance allows you this security and relieves you of the constant worry about your investment and your family’s financial security.
Many mortgage life insurance policies come with the option of adding clauses to the main policy. These could include benefits for your family, accidental death cover, terminal illness cover and other such additional covers or benefits. Paying an additional small premium for these clauses in your policy can often make a lot of sense and should definitely be considered.
The thought of death is not pleasant at all, but if you think about it pragmatically, taking a life insurance policy means securing the future of your loved ones even when you may not be around to take care of them.
Mortgage life insurance can be broadly categorized into two types:
Whenever you decide to take a mortgage life insurance, you must consider both the type of mortgage you have and the risks that you wish to be insured against. You should also survey the market for the best deals and consider additional coverage and benefits offered in each policy.
It is generally a good idea to use an experienced mortgage broker to help you understand the terms of various policies and then choose the policy best suited for your situation.
Taking a mortgage life insurance is a smart choice as it will provide financial security for your family and peace of mind for you.