As the name suggests, mortgage protection is a kind of insurance policy that covers your mortgage. This cover normally works the same way as your life insurance cover. When you die, the premiums that you have been paid will be used to pay off the rest of your mortgage payments. Some lenders will need to confirm that you actually have a life policy before they can give you the mortgage. This will ensure that they get their payments even if you were to die. This is an important requirement especially to borrowers over the age of 50.If you don't have the mortgage protection, your house may have to be sold so that the loan can be repaid. This is one of the reasons why it is very important to have mortgage protection. It ensures that your dependents will not be left homeless upon your demise.
Apart from death, your mortgage protection will also shield you in the event of disability. Life has its ups and downs and you never know what may happen in the future. If you become disabled for any reason, you will have the peace of mind knowing that your home is secure. You will also not have to worry about the mortgage payments for a while as you sort out your medical bills. Nothing would be more stressful as becoming disabled then losing your home because it has to be sold off to repay your loan.
Mortgage insurance will not only come in handy when you die, but will also help you and your family when you are living. These days, many people lose their jobs. Retrenchment has been a common practice in many companies. The economy is also not doing so well so many businesses have been forced to close down. Ever wondered how you will pay for your mortgage in case you lose your job? Well this where the mortgage protection comes in. Once you lose you source of income, your mortgage insurance plan will start paying your mortgage. They can do this until you get a new job. Once you become financially stable again, you can renew your policy and start making payments again. This mortgage protection can really help you not to get bad credit history by falling behind in your mortgage payments just because you don't have a job.
There are many types of mortgage protection policies. For instance, there is the level benefit term policy. This will involve the paying of premiums for a long period of time usually between 20 to thirty years. After these payments, the policy will start covering your mortgage payments. There is a type of mortgage protection policy that ensures that you get all your premiums back in case you finish your mortgage payments. This is called the return of premium policy.
The amount of premiums that you have to pay for your mortgage protection policy depends on the amount of mortgage payments you make. If you have a big house with high monthly mortgage payments, your premiums will be high. If your mortgage payment is low, your premiums will equally be low.
Apart from death, your mortgage protection will also shield you in the event of disability. Life has its ups and downs and you never know what may happen in the future. If you become disabled for any reason, you will have the peace of mind knowing that your home is secure. You will also not have to worry about the mortgage payments for a while as you sort out your medical bills. Nothing would be more stressful as becoming disabled then losing your home because it has to be sold off to repay your loan.
Mortgage insurance will not only come in handy when you die, but will also help you and your family when you are living. These days, many people lose their jobs. Retrenchment has been a common practice in many companies. The economy is also not doing so well so many businesses have been forced to close down. Ever wondered how you will pay for your mortgage in case you lose your job? Well this where the mortgage protection comes in. Once you lose you source of income, your mortgage insurance plan will start paying your mortgage. They can do this until you get a new job. Once you become financially stable again, you can renew your policy and start making payments again. This mortgage protection can really help you not to get bad credit history by falling behind in your mortgage payments just because you don't have a job.
There are many types of mortgage protection policies. For instance, there is the level benefit term policy. This will involve the paying of premiums for a long period of time usually between 20 to thirty years. After these payments, the policy will start covering your mortgage payments. There is a type of mortgage protection policy that ensures that you get all your premiums back in case you finish your mortgage payments. This is called the return of premium policy.
The amount of premiums that you have to pay for your mortgage protection policy depends on the amount of mortgage payments you make. If you have a big house with high monthly mortgage payments, your premiums will be high. If your mortgage payment is low, your premiums will equally be low.
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