Mortgage Insurance covers your mortgage in the event of your death. Mortgage Life Insurance, also known as Mortgage Insurance or Creditor Insurance, is offered by most banks and lending institutions. It is a life insurance policy that pays the balance of your mortgage to the lending institution if a person listed on the mortgage passes away. If you were to become critically ill, suffer an accident or die, the financial burden of paying for the mortgage falls on the family members. Would your family be able to keep making the mortgage payments? Would they have to sell your home? You can protect your family home with Mortgage Life Insurance, a flexible and low-cost way to protect one of your largest outstanding financial obligations. Your personal insurance remains intact even if you switch lenders.
The coverage is not transferrable. This means that the insurance is tied to a specific
mortgage. With an individual policy, the insured can keep their coverage if they move homes,
switch banks, or eventually pay off their mortgage.
The plan ends as soon as one spouse passes away. An individual policy can be set up as a joint policy or multi-life policy which allows the beneficiary to receive a double benefit in the event that both spouses pass away.
The coverage is not convertible. A mortgage life insurance policy is not convertible to a permanent policy, but an individual term life policy is convertible to a permanent plan. This allows the insured, who may have developed some health issues over the life of the policy, to convert to a permanent level rate plan without any medical tests or health questions.
When purchasing your new home, take the time to shop and compare lowest quotes for life insurance. Compare the cost of a term life insurance policy to a mortgage insurance policy. Chances are you'll find a term life insurance policy will have lower yearly premiums and offer more coverage and flexibility than a mortgage insurance policy. We at Lifeline Insurance offer the lowest quotes on term life insurance and mortgage insurance.
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