Having a mortgage can make sure that people have a better chance to own homes at an early age and at relative ease compared to cash purchases. However, with too many uncertainties in life coupled with the constant reality of death, people need to think about what can happen when they die and yet they had a mortgage to pay off.
One handy option is to take a mortgage life insurance. This differs from mortgage insurance and slightly differs from a life insurance because it is an insurance policy that is specifically meant to pay off someone’s mortgage only when he dies and not in the event of unemployment or repeated default.
Seniors can now have less to fear about taking a mortgage
A potential home owner does not have to worry about taking a mortgage at an advanced age anymore. Since there is mortgage life insurance, there is still hope if he dies because of age related problems and the mortgage premiums still need to be paid.
In such cases, the premiums that have been paid from the time the mortgage was active until the time of death will not be futile because of repossession fears. Repossession jitters can be quelled easily and the family that lived in the same house with the deceased can have some breathing space because they will not have to make new arrangements for accommodation. Sunflower Life Insurance specializes in senior mortgages – offering many different affordable plans so that your home-owning dream can become a reality.
The insurance protects the home owner and not the mortgage lender
A number of cunning mortgage lenders used to have a preference for monied but aged or high risk borrowers when entering mortgage agreements. However, having a mortgage life insurance gives the borrower some extra advantage because the lender does not stand to reap unfairly just because the borrower died. A death benefit will immediately spring into action to clear the debt.
Death is more pronounced when the breadwinner is the one who has passed on. In such cases, if there was no life insurance mortgage and there is a death, a lot of funds will have to be diverted to paying the mortgage and in this situation; many families divert the children’s college funds just to stay afloat.
Ordinary term life insurance versus mortgage life insurance
In term life insurance, someone selects a term and pays an agreed premium. In such a case, this policy is charged at a higher price than taking a separate mortgage life insurance policy because in many cases, death triggers payment of the earlier on agreed sum where as in mortgage life insurance a death benefit sum is agreed on and this reduces as someone gets close to clearing off the mortgage.
The process of getting mortgage life insurance is less cumbersome than getting term life insurance because there are fewer checks done. There is a reduced need for medical checkups and assessment by credit bureaus when taking up a policy to protect the family of mortgage problems when death comes a-visiting.
Having a life insurance policy and also holding a separate mortgage life insurance is beneficial so that a family can enjoy the positives from both covers with less extra cost. Visit official site