Mortgage Life Insurance – Your Solution To Mortgage Repayment After Your Lifetime
As with everyone, the most important thing that you would want to have is a home. However, with rising property values, most people find it very difficult to pay the entire amount upfront and take a mortgage. The home is purchased on loan given by a financial instruction or bank.
However it is to be noted that mortgage periods are huge and can be anything between 10, 20 or even 30 years. What if you become disabled or pass away during this period? How will your mortgage monthly payment be met with? Such situations call for mortgage life insurance.
About Mortgage Life Insurance
Mortgage life insurance enables your family to meet mortgage expenses in the event of your sudden passing away or becoming an invalid. Usually a home mortgage is taken up by people in their early thirties and the repayment period can be something around ten or fifteen years.
During this period, monthly repayment will be made against the loan, but if any sudden life threatening problem arises, the family will be left with the burden of having to make a huge mortgage payment every month, when your income is no longer available to support them.
Taking mortgage life insurance offers them compensation in the event of such a situation. It will pay out for the entire mortgage amount so that the home belongs to your dependents. Usually most home insurance or life insurance companies offer a 100 percent payout, but this percentage might reduce when you have a very big mortgage amount to repay.
How To Avail AARP Mortgage Protection Insurance
Applying for an AARP mortgage protection insurance can be done when taking the mortgage. It will get added up to your monthly mortgage loan amounts. Application can be done online and monthly premiums are very affordable. Those who have difficulty in getting regular senior life insurance will find this type to be very suitable for their needs.
Important Points To Note
It is to be noted that the insurance coverage decreases as you pay off the mortgage principle. So of you have paid of $50,000 from the original $200,000, m Mortgage life insurance is only for the remaining $150,000. The premium amount will not reduce with the decrease in coverage.
Mortgage Life Insurance For Seniors
This particular feature makes it very different from regular life insurance policy. In the event of a loss due to which claim is made on the policy, payment will be towards the financial institution that is providing the loan and not any of the people depending on you.
It is to be noted that mortgages take time to repay. Due the huge repayment period anything can happen which can result in the monthly repayments going unpaid due to lack of funds. Don’t let a lovely home that you took so long to build and protect go away due to financial debt. Apply for mortgage life insurance to protect your loved ones in the event of loss of life or permanent disability, which leaves behind the burden of mortgage loan repayment.