There is a need to know about Mortgage Life Insurance which of course is very necessary for all businessmen or women.<\/p>\n\n\n\n
Mortgage life insurance is a type of insurance that pays out if you pass away before you end the payment of your mortgage.<\/p>\n\n\n\n
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.<\/p>\n\n\n\n
There are basically two types of mortgage cover:<\/p>\n\n\n\n
1. Decreases term- this is where the pay-out decreases in line with your mortgage balance<\/strong><\/p>\n\n\n\n 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).<\/p>\n\n\n\n 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.<\/p>\n\n\n\n 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.<\/p>\n\n\n\n\n\n\n\n 2. Level Term- This is where the pay-out is fixed for the duration of the policy<\/strong><\/p>\n\n\n\n These are expensive policies as they pay a specific lump sum if you pass away within a specified time.<\/p>\n\n\n\n For example; You\u2019d be paid \u00a3200,000 if you die within the next 18 years. This is a better option if you want to leave a lump sum for your family to pay for more than your mortgage.<\/p>\n\n\n\n Level-term is also a better option if you have an interest-only mortgage. With this, the lump sum would be available to cover the capital than the repayments.<\/p>\n\n\n\n A mortgage life insurance is a very cheap and easy way to ensure your dependants have financial backups when you are no more.<\/p>\n\n\n\n Ultimately, you don\u2019t need life insurance so you\u2019ll have to weigh the monthly cost to see if it\u2019s worth it.<\/p>\n\n\n\n Here are two key points to help you make a good consideration:<\/p>\n\n\n\n A mortgage life insurance is definitely not needed when you have no dependents.<\/p>\n\n\n\n It would imply that the person who inherits your property doesn\u2019t need to sell it, unless they\u2019re in a good position to pay off your mortgage, or could get one themselves.<\/p>\n\n\n\n Having life insurance would definitely give your dependants a lump sum when you die. If they want to use the lump sum to pay off the mortgage, you have to ensure the amount you\u2019re covered for is more than the amount you owe, and the policy coverage is in force for as long as the mortgage duration.<\/p>\n\n\n\n\n\n\n\n Most policies offered by the mortgage provider are mostly inflated and you are under no pressure to take them.<\/p>\n\n\n\n Never go blindly with a policy that is being offered to you by your provider.<\/p>\n\n\n\n The mortgage life cover is separate from your mortgage agreement and lender. The best thing to do is to get quotes from a number of insurers.<\/p>\n\n\n\n Go directly to brokers to get the cheapest quotes.<\/p>\n\n\n\n There are two ways to about this:<\/p>\n\n\n\n\n\n\n\n If you\u2019ve got complicated health conditions or you do not know the kind of policy you need, you should consult a broker for advice.<\/p>\n\n\n\n Even though they might help you acquire the most suitable policy for your needs, the broker might take some commission.<\/p>\n\n\n\n Go to a specialist discount broker if you know exactly what you want. This is one of the cheapest ways to buy life insurance, but it relies heavily on you knowing the sort of policy you want to buy.<\/p>\n\n\n\n These brokers normally rebate the commission they get from the insurer to you as a discount. You might still pay them a small token, usually \u00a325 or so.<\/p>\n\n\n\n You can save about \u00a31,000 over the life of a policy as opposed to from an insurer or a bank. You\u2019re likely to get better advice from these companies.<\/p>\n\n\n\n Note: Make sure you\u2019re clear on whether you are being given information or advice when speaking to these companies.<\/p>\n\n\n\n You should not be pressured into buying a policy when they are giving information or answering your questions and if you are being advised, they need to do a full check on your financial and medical status with your insurance need before they can suggest policies to you.<\/p>\n\n\n\n The insurance has a very bad reputation when it comes to customer service. Some providers can be good to some and very unfair to others.<\/p>\n\n\n\n Some of the common problems might include; claims not being paid on time, exclusions being hidden in very small print, claims not being paid out on time among many others.<\/p>\n\n\n\n It is worth calling your provider first but if not\u2026<\/p>\n\n\n\n Read Also: How Mortgage Protection Insurance Works<\/a><\/span><\/strong><\/p>\n\n\n\n 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 […] More<\/a><\/p>\n","protected":false},"author":2,"featured_media":4662,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"spay_email":"","footnotes":""},"categories":[2],"tags":[],"reaction":[],"adace-sponsor":[],"jetpack_featured_media_url":"https:\/\/orekodo.net\/wp-content\/uploads\/2021\/11\/Mortgage-Life-Insurance.jpeg","wps_subtitle":"","_links":{"self":[{"href":"https:\/\/orekodo.net\/wp-json\/wp\/v2\/posts\/4660"}],"collection":[{"href":"https:\/\/orekodo.net\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/orekodo.net\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/orekodo.net\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/orekodo.net\/wp-json\/wp\/v2\/comments?post=4660"}],"version-history":[{"count":0,"href":"https:\/\/orekodo.net\/wp-json\/wp\/v2\/posts\/4660\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/orekodo.net\/wp-json\/wp\/v2\/media\/4662"}],"wp:attachment":[{"href":"https:\/\/orekodo.net\/wp-json\/wp\/v2\/media?parent=4660"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/orekodo.net\/wp-json\/wp\/v2\/categories?post=4660"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/orekodo.net\/wp-json\/wp\/v2\/tags?post=4660"},{"taxonomy":"reaction","embeddable":true,"href":"https:\/\/orekodo.net\/wp-json\/wp\/v2\/reaction?post=4660"},{"taxonomy":"adace-sponsor","embeddable":true,"href":"https:\/\/orekodo.net\/wp-json\/wp\/v2\/adace-sponsor?post=4660"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Should I get mortgage life insurance?:<\/h2>\n\n\n\n
Mortgage life insurance need-to-knows.<\/h2>\n\n\n\n
How to slash the cost of mortgage insurance quotes:<\/h2>\n\n\n\n
Getting advice from a broker- this is the best move if you need help choosing:<\/h3>\n\n\n\n
Buying from a discount broker- this is the best move when you know the policy you want:<\/h3>\n\n\n\n
How to complain about your insurance provider:<\/h2>\n\n\n\n