There is a need to know about Mortgage Life Insurance which of course is very necessary for all businessmen or women.
What is mortgage life insurance?
Mortgage life insurance is a type of insurance that pays out if you pass away before you end the payment of your mortgage.
The purpose is to prevent the family you leave behind from making monthly repayments or being forced to sell the properties to pay the amounts owed.
There are basically two types of mortgage cover:
1. Decreases term- this is where the pay-out decreases in line with your mortgage balance
This is the cheapest mortgage you can get in the market, as your coverage amount decreases as you pay the mortgage off (Although your monthly payments do not change).
Your dependents have enough money remaining to pay the rest of the mortgage. It is solely designed for repayment mortgages- this is where the amount you borrow is fully repaid at the end of the duration.
It is also worth looking at level-term insurance too- if both policies are not too dissimilar in price, the level-term is a better option as it provides more cover.