Mortgage Life Insurance is an Excellent Investment
by Tracy C. Fonville
Why buy mortgage life insurance? The first question anyone should ask when considering this is why one would have insurance in the first place edmonton mortgage rate. The obvious answer would be to protect your family.
Mortgage life insurance is a specific protection that makes sure that your family can afford to live in their home in case you die or are disabled.
Policies of various sizes and coverages exist, but the more coverage, the more expensive the insurance. Your own family needs should dictate the kind of policy you choose.
Most people think of mortgage life insurance simply because they want to make sure their family will be able to continue to live in their homes in case of the death of the main breadwinner. Especially in the case of a young family, with a spouse who stays home to care for the children, the loss of the working spouse’s salary would be devastating alberta mortgage. Disability or unemployment mortgage life insurance is also available to cover those contingencies.
Even if you have two incomes and only one is lost, in today’s economic environment, the home loan payment will suffer. Having the home loan payment, usually the highest expense of the average family, removed from the total expenses will make a big difference in how the family copes after the death of one of the breadwinners.
There are other practical reasons for deciding mortgage life insurance, such as the cost and the size of the policy that can be purchased.
When mortgage life insurance is bought, it can be cheaper than regular life insurance. In addition, if you purchase your mortgage life insurance from your bank, you can usually have the premium added to the monthly mortgage payment, which makes budgeting for this important benefit much easier.
In many cases, people who may have been turned down for a life insurance policy may be eligible for mortgage insurance coverage. Some carriers may even waive a physical, depending upon the age of the applicant.
Another factor that is important to consider is the size of the policy. Many life insurance policies may not be issued for lower than $100,000. A mortgage life policy is issued for the balance of the mortgage, even if that is below $100,000.
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