USING LIFE INSURANCE FOR YOUR MORTGAGE 2021
This 2021, if you buy mortgage life insurance you’ll typically purchase it when you buy your home or shortly after. Your home may be your family’s largest asset and their largest financial responsibility. A mortgage protection insurance policy can help you remain in your home after you’re gone. The policy’s length will coincide with the number of years you have to pay off your mortgage.
Mortgage life insurance is usually sold by the mortgage lender, an insurance company affiliated with your lender, or another insurance company that mails you after finding your information via public records. If you buy it from your mortgage lender, the premiums can be rolled into your loan. The mortgage lender is the beneficiary of the policy, not your spouse or another person you choose. This means the insurer will pay your lender the remaining balance on the mortgage if you pass away. Money does not go to your family with this type of life insurance. Here are some frequently asked questions about having a mortgage life insurance this 2021.
Can I Get Mortgage Life Insurance with My Spouse?
You can typically insure two co-borrowers under one mortgage life insurance policy. If you pass away at the same time, the policy pays off the mortgage. If only one borrower passes away, the coverage continues on the other person.
Are There Exclusions?
You’ll likely find that a mortgage life insurance policy won’t pay out if the person’s death was due to suicide within the first two years of the policy. This is a common exclusion on all types of life insurance policies.
Advantages of Mortgage Life Insurance
One of the advantages of mortgage life insurance is it may give your family peace of mind knowing that if something were to happen to you and the mortgage would be paid off. But keep in mind that other forms of life insurance, such as term life insurance, can provide that same peace of mind.
Term life insurance can also give your family flexibility with how they use the life insurance payout. With term life insurance, you can match your coverage amount and policy length to your mortgage. You could also pick a coverage amount or length that factors in other financial responsibilities you want to cover, such as your annual income or children’s college tuition.
No Life Insurance Medical Exam
Mortgage life insurance this 2021 generally does not require a medical exam and it may have no health questions, either. For those with medical conditions, mortgage life can be an alternative to traditional life insurance that uses health as a factor in pricing.
That’s about it for the fundamentals of mortgage Life Insurance in 2021. If you are looking for life insurance for your mortgage. One recommendation is Manila Bankers Life Insurance Corporation. They have been around since 1967 and they are duly recognized and authorized by the Philippine Insurance Commission. The company offers a wide array of new and innovative life insurance products, catering to the needs of individuals and groups. This 2021 the company created customized life insurance packages based on the requirement of its major and significant customers.
