14:17 13 March 2013
What is Mortgage Life Insurance?
A Mortgage life insurance does not benefit the mortgage company in any particular way. It is like having additional insurance for your health. An example of this would be the government insurance and then on top of that having your car insurance have more health insurance for you if you are in an accident.
The only way the mortgage company gets anything out of it is through a monthly payment similar to the car insurance or any other monthly bill you pay.
Even if you have sufficient life insurance or any other type of product, which pays upon the death of you or a loved one, you might want to consider purchasing mortgage life insurance.
Typically many people when they are planning a family estate or for their timely passing most of them only think about the cost of the funeral and the first months bills. What does the family do after that in order to pay off the family home?
The answer is usually nothing to the above question. Well with mortgage life insurance it pays out the full amount of the mortgage loan to the company upon the death of the holder of the mortgage. So there is no reason for the family members to worry where they will live if you have purchased mortgage life insurance.
So is mortgage life insurance a necessary or is it a luxury? In order for me to give you my opinion I would have to know your financial history and your information. I definitely think anyone in the middle class should definitely purchase it.
However, they should only do this if they can afford it in their budget. Many middle class families can’t even afford to cover their health insurance with the insurance companies raising premiums.
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