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					Title:
The importance of mortgage life insurance


Word Count:
520


Summary:
Let’s face it – mention things mortgage life insurance – in fact anything personal finance related - and we all
know that it is as dull as dishwater. However, without things like mortgage life cover - life could be a lot
harder financially.



Keywords:
life insurance ,critical Illness cover, life cover, mortgage life insurance



Article Body:
Let’s face it – mention things mortgage life insurance – in fact anything personal finance related - and we all
know that it is as dull as dishwater. However, without things like mortgage life cover - life could be a lot
harder financially.


So, what is mortgage life insurance and what is so great about it?


In a nutshell, in the event of you or your partner dying, mortgage life insurance can mean that the difference
between keeping a roof over your head or ending up having your home repossessed – a frightening thought.



And while many of us find organising something like life insurance a sombre business as it makes us face
our mortality, it is the fair and right thing to do for your partner and any next of kin to make sure that your
finances are in order in the event of your death.


So why do you need mortgage life insurance cover? A mortgage life insurance policy runs for a fixed policy
term – most people take it put to run concurrent with their mortgage. Should you die before the end of the
term period, the policy can help pay off outstanding balance of the mortgage on your home. This will be in
the form of a cash sum.


This means that your dependants will not have the financial worry of trying to find the mortgage repayments
in the event of your death. Neither will they have to worry about selling up and maybe downsizing in order
to keep a roof over their heads – the last things that you would want to put them through.


The good thing about mortgage life insurance is that you only pay for the cover that you need – so as the
amount outstanding on your mortgage decreases, you are only paying out for the level of cover you require.


Mortgage life policies are available on a single or joint life basis. If you have a joint life policy, the amount
is paid out on the first claim only. You can decide how long you want the policy to run for – and as we
mentioned before, most people have it to run concurrent with their mortgage – and in most cases you can
have additional benefits such as critical illness cover for an additional premium.


With critical Illness benefit the policy pays out either on death or on the diagnosis of a specified critical
illness (such as certain cancers, triple artery bypass) - whichever occurs first. Check with your chosen
insurance provider as to what illnesses are covered, as they can vary from insurer to insurer.


If the policy is paid out before the end of the policy term, it ceases. And if the policy is in force at the end of
the term, it will have no cash in value.


If you are looking for mortgage life insurance, then do shop around and do not automatically accept the first
quotation you get. Premiums as well as terms of the policy and other benefits can vary wildly from provider
to provider and you could be surprised just how cheap mortgage life insurance can be, without any
compromise on cover.




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posted:3/2/2012
language:English
pages:2