Mortgage insurance can be taken for the entire term of the mortgage

Posted by AmandaTom on October 24th, 2013

 Any person who has bought a home with a mortgage should opt to take mortgage life insurance. Mortgage insurance will pay off the existing mortgage in case the insured person dies.  If you are looking to buy a new home, or you already have a home and you are looking for options to protect your family, you can choose to buy mortgage life insurance. Mortgage life insurance main benefit is protecting the family of the borrower.  Most of the mortgages that are issued by a financial institution are taken out for about 20 to 30 years.  This is a very long time during which an unforeseen circumstance could cause your family to lose the home, which you have placed a mortgage on. This is the reason why mortgage life insurance exists. The balance of your mortgage is completely paid off with mortgage life insurance coverage.

 Many people who take out a mortgage do not think about the risk factors that might be involved in the mortgage. They may think the family would be able to pay the mortgage payment without considering how a death might affect the mortgage. For this reason many financial institutions that provide loans usually recommend that you purchase mortgage insurance. This is to make sure that both your family and the financial institution are protected.

 A level term insurance policy is taken out for 10, 20 or even 30 years. Typically, if you have a mortgage loan for the next 13 years, term life insurance is the best kind of policy that will be able to provide your family protection.  The premiums on level term insurance remain the same every year during the term of your policy. There are also decreasing term insurance plans that are available with some insurance companies. You can choose which plans will best suit your mortgage and your family. Most people choose to take out a level term policy, as opposed to decreasing amount policies. More than 97% of people prefer a level term plan as opposed to decreasing term. This is mainly because people prefer the insurance amount to not change over the next 20 to 30 years or the duration of the mortgage.

 Bear in mind, that if you were no longer alive, there would be no one to look after your family and provide an income for them.  Think of all the expenses that your family would incur with only one income.  Therefore, taking out mortgage insurance is the best advice and the best decision that you can take for the welfare and protection of your family. At the end of the day, no one wants their family to lose the family home in the event of an unexpected death. Everybody would like their homes to continue to be enjoyed by their children and family.  Therefore mortgage insurance completely provides the right kind of protection that your family needs in case you die, and allows your family to continue their standard of living if you were not alive.

Mortgage insurance is always a must if the person who recommends the Mortgage life insurance is a financial institution.