Enjoy the safety of Mortgage Life Insurance
As a borrower of a mortgage loan, one is bound to feel worried about the family’s financial fitness. Paying off the mortgage debt will naturally fall upon the weak shoulders of family members and make their life more difficult. So, it is natural and almost routine for borrowers of mortgage loans to also take up mortgage life insurance.
Mortgage term life insurance invokes in case of death of the borrower during the term paying off the debt. It pays off the debt liability plus any other payments due in connection, like taxes. The borrower pays a nominal premium in return when he/she buys the mortgage term insurance.
One can choose between level term and decreasing term in Mortgage term life insurance. While decreasing term involves decreasing coverage representing the corresponding remaining mortgage loan to be paid off, level term coverage remains constant. The latter is more appropriate in case the type of mortgage loan involves interest only payments.
When buying a mortgage term insurance, the borrower should read the terms and conditions carefully and decide, considering the life spans of both the mortgage loan and the expected his/her life expectancy. Besides, one ought to choose the coverage based on the basis of the balance mortgage loan in question. Also, it is advisable to ensure that the terms provide for financial assistance in case the borrower loses his/her job due to any reason. These terms may include both steady payment of mortgage loan during the period and payment of living expenses to the borrower during the period of unemployment.