Article Categories
» Arts & Entertainment
» Automotive
» Business
» Careers & Jobs
» Education & Reference
» Finance
» Food & Drink
» Health & Fitness
» Home & Family
» Internet & Online Businesses
» Miscellaneous
» Self Improvement
» Shopping
» Society & News
» Sports & Recreation
» Technology
» Travel & Leisure
» Writing & Speaking

  Listed Article

  Category: Articles » Finance » Insurance » Article
 

Mortgage Insurance For Your Home




By Ivon T. Hughes

When buying a home, most of us will take out a mortgage
to finance our new purchase. The provider of that
mortgage, normally a bank or trust company, may require
you take out a mortgage insurance policy to guarantee
payment of the mortgage. Should you die with a balance
still owing, the bank, which owns the policy, will receive the
balance of the payments in one lump sum. In this case, the
survivors of the mortgage holder now own the house
outright.

This is a group life insurance which you get by simply by
ticking a box. However, the downside of this is that you are
grouped together with people of varying ages and states of
health; in other words, a typical group insurance policy. If
you are older and not in great health, this may be the way
to go, though you should certainly confirm that you can't
get a better rate. It is very very easy just to agree and tick
a box simply on the grounds that it takes no effort to do so.
But that little tick can cost you hundreds of dollars more
than you need to spend.

By far the majority of buyers should go to a broker who will
look after their interests, not the interests of the bank. You
need someone experienced to advise you on what you
need and then to shop for that particular type of life
insurance for you. You then have a list of companies and
prices from which to make a choice.

You now have the mortgage insurance for the amount
owing on your mortgage, and because you own it, not the
bank, your survivors can decide what to do with the capital
if you die. They could just continue the payments, pay off
some of the capital owing or pay it off completely, their
choice!

Doing it this way enables you to consider other reasons to
take this mortgage insurance. Perhaps you also have a
cottage or second home for which you also need mortgage
insurance.

It is important to remember that "mortgage insurance" is
term life insurance, purchased for the purpose of paying off
the mortgage. It is for this reason only that it is called
mortgage insurance.

 
 
About the Author
Ivon T. Hughes of The Hughes Trustco Group is the author of the Life Insurance Handbook: How To Get The Best & Cheapest Life Insurance available FREE to all new subscribers at http://www.hughestrustco.com.

Article Source: http://www.simplysearch4it.com/article/25717.html
 
If you wish to add the above article to your website or newsletters then please include the "Article Source: http://www.simplysearch4it.com/article/25717.html" as shown above and make it hyperlinked.



  Some other articles by Ivon T. Hughes
Disability Insurance Why Do People Buy It?
Each person who buys disability insurance has his or her own particular reason to get income protection with their own disability insurance ...

  
  Recent Articles
Get the Best Insurance Policy For Your Home
by Barbara Thorp

Travel Insurance Online: Both Money And Time Saving
by Henry Bell

Travel Insurance UK: Travel Without Worries
by Henry Bell

Who Else Wants Health & Life Insurance Leads that Turn to Clients 80% of the Time
by Ken Wilson

Build a Network of Client You Can Be Proud of from Closing Auto Insurance Leads
by Ken Wilson

Get Rates that Insurance Agents Get on Life Insurance
by David Yuri

Secrets of Low Cost Health Insurance
by Clint Jhonson

Little Known Ways to Save on Life Insurance
by David Yuri

Now You Can Have Home Insurance Leads that Convert to Policies
by Ken Wilson

The Secret of Auto & Home Insurance
by Clint Jhonson

Must Know Insurance Saving Tips and FAQ
by Clint Jhonson

At Last an Insurance Magazine for Both Insurance Consumers & Insurance Agents
by Clint Jhonson

Home Content Insurance: An Additional Safety
by Henry Bell

Car Insurance Quote: Select an Appropriate For You
by Henry Bell

Insurance
by Henry Bell

Nicotine Boost Increases Insurance Premiums
by Krista Farmer

Cheap Travel Insurance: Enjoy your journey without Worries
by Henry Bell

Can't connect to database