Mortgage Life Insurance provides financial assistance to your family or beneficiaries on your death or serious illness so that they can overcome any difficulties in maintaining your mortgage payments after losing your income.
Buying a home is likely to be the biggest financial commitment you will make and most of us don't think twice about insuring the potential loss of the home contents. Surprisingly, many people failt to protect their ability to continue making the monthly mortgage payments should the household income be affected due to the death or serious illness of the main breadwinner.
Like most people, there's a good chance that if your salary were to stop with little warning you would be unable to meet all the financial demands on you. This could mean you would be unable to pay your mortgage and risk losing your home.
Worse still if you were to die, would those you leave behind be able to keep the home you have worked for? If your income, which may be the sole income in the household, were to stop could your loved ones meet the mortgage payments?
Think how much you pay for your other insurance policies covering your house contents and your car. You'll be surprised how little it costs to protect the most important thing - your ability to meet your mortgage costs.
Mortgage Life Insurance helps you to plan for life's uncertainties, offering you some security and peace of mind.
Mortgage Life Insurance - pays a lump sum on death
Ensures your entire mortgage debt is paid off if you die within the term of the policy. Depending upon the type of mortgage you have, the amount of cover will either decrease or stay the same. Decreasing policies are most commonly used for repayment mortgages and level policies for interest only mortgages. Most policies now also include terminal illness cover at no extra cost which will again pay out a lump sum to pay off your outstanding mortgage debt, but if you are diagnosed with a terminal illness that is likely to lead to death within 12 months.
Critical Illness Insurance - pays a lump sum on diagnosis
Critical illness insurance pays you a lump sum (and with some policies an income), usually the same amount as your mortgage, if you are diagnosed with and satisfy the definition of an eligible critical illness covered by the policy. If you develop a critical illness this cover ensures you can keep your home at a time when money concerns shouldn't be on your mind. Critical Illness Insurance can be taken out as a stand alone policy or included as an option with Mortgage Protection Life Insurance.
Read lots more detailed articles on buying mortgage life cover online at http://www.lifeinsuranceanswers.co.uk. From choosing the right policy and options to the best way to compare life insurance quotations for maximum savings, you'll find it all.
Orignal From: A Guide to the Different Types of Mortgage Life Insurance Quotations
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