Mortgage Life Insurance
Mortgage Life Insurance is a type of??term life insurance obtained by borrowers of a home mortgage. The amount of coverage decreases as the principal balance declines. In the event that the borrower dies while the policy is in force, the debt is automatically satisfied by insurance policy proceeds.
An owner of house (property) who has a mortgage on the property?? can purchase mortgage life insurance.
Mortgage Life Insurance is designed to pay off the mortgage in the event that the owner of the property (borrower of the loan) dies prior to paying off the mortgage.
Can Premiums increase on Mortgage Life Insurance?
No, Premiums remain level for the duration of the life insurance policy.
Life Insurance to pay off your Mortgage can give you peace of mind to ensure your loved ones will continue to stay in the house and not be burdened with paying for the mortgage in case you die before the house is paid off.
Death or Terminal Illness
Mortgage life insurance will pay your mortgage off in the event of either diagnoses of a terminal illness or death of the insured(s).
People are increasingly taking out critical illness policy to pay off mortgage when critically ill. This makes sense as 1 in 4 men and 1 in 5 women are likely to suffer a critical illness before retirement.
The policy ensures that apart from death or terminal illness,??critical illness will also result in repayment mortgage being fully repaid. Thus it can be a big relief. It should be possible to buy a combined mortgage and critical illness policy with a guaranteed level premium. Spectrum Insurance Group specializes in finding these policies for their clients, due to the fact that many carriers will not offer a level (guaranteed fixed) premium on the purchase of critical illness insurance alone.
How are payments made?
Mortgage life insurance pays a one time, lump sum payment to pay the outstanding balance of the mortgage in case of death or fatal illness.
How does it work?
The premiums to be paid decrease each year in line with the decreasing sum owed to the mortgage lender. In case of a repayment mortgage, your monthly payments repay both the interest and capital initially borrowed, sparing your family the burden of substantial debt at your passing.
Who can get mortgage life insurance?
Those that have a mortgage are eligible for mortgage life insurance. A majority of the people are typically younger individuals under age 50, first or second home buyers. This is the vast majority of who typically gets coverage.
No Medical Evaluation Required!
One huge reason that may buy mortgage life insurance is there is no medical examination required. It is thus a viable option for homeowners with health conditions that prevent them from taking other types of life insurance.
Purchase or Refinancing or any time you have?? Mortgage
There is no set time frame when you have to purchase mortgage life insurance.?? You can get mortgage life insurance anytime, whether you are buying a home or if you are refinancing or have just refinanced,having mortgage life insurance is an added peace of mind for your loved ones to ensure protection from the strains of life to provide for your loved ones when you are no longer there to do so.
How do I get Mortgage Life Insurance?
Call us to let us help you get mortgage life insurance.