Mortgage Life Insurance: What You Need To Know
By J Brennan
Mortgage insurance is a wise move. Should anything happen to you, your family
would be protected by having mortgage insurance, or an extra life insurance
policy to cover the mortgage.
Should anything happen to you, your family would be protected by having mortgage
paid off. Having the house paid off would secure your family's finances. Or, if
you have insurance that is triggered by a disability or being unable to work,
then you and your family are covered if something should happen to the finances.
Mortgage insurance actually is such a good idea that many mortgage companies, in
fact most of them, insist on it. That is wise on the part of the mortgage
company because it provides them with additional security, and makes it easier
for them to justify loaning you the money for your mortgage. From a business
standpoint it really just makes sense both for you and for them. However, you
are not required to purchase the life or disability insurance from the mortgage
company, and you can usually get more coverage for less per month with a term
policy through another company.
Take, for example, the case of Mary Jones. Mary and her husband Tom worked hard
to raise a down payment to buy a home. The Joneses had three children, and they
both decided that Mary should stay home with the kids. Tom had a good job and a
nice paycheck so it wasn't a burden. However, Tom was tragically killed in an
auto crash. This left Mary alone to support the family without an income.
Fortunately Tom had enough life cover to offset his financial contribution to
the running of the household. He also had mortgage insurance. Mary received a
check from the life insurance company large enough to invest and support her and
the kids until they were grown, and another check she used to pay off the
mortgage on the home, which took away the largest monthly expenditure. Mary no
longer had to worry about making the house payment each month, or dipping into
the life insurance money to make the house payment. The mortgage insurance took
care of that for them.
Mary's case is not unusual. Each year in the USA many people depend on mortgage
insurance when an unexpected tragedy occurs. Mortgage insurance (or additional
life insurance to cover the mortgage) can seem like a burden to those who opt
for it, until they think about the amount of protection it provides. Mortgage
insurance is one of those things that you are very glad to have when you finally
About the Author
Specialist term life insurance coverage advice is important. Get the Protective Life Insurance Policy information you need: www.accuratetermlifeinsurancequote.com
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| Some other articles by J Brennan|