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Mortgage Life Insurance

Mortgage life insurance is essential if you are the breadwinner in your househol. One of the biggest financial worries for your family in the event of your death may be paying off your mortgage. Your spouse may be left with a very considerable amount of debt if you have only recently purchased a house, and when adding to the costs of childcare and education, he or she may struggle to cope. Alternatively, your spouse may be near retirement age, and your mortgage may be near payment. Would it not be a true gift to him or her to ensure it would be fully paid off in the event of your death?

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Cheap Mortgage Insurance Rates

Consumers who seek to ensure that their family are not saddled with the substantial costs of a mortgage may consider it prudent to invest in mortgage life insurance quotes. This type of policy will pay off your mortgage if you die with an outstanding balance. Policies typically charge you at premiums which gradually decrease in time, as the outstanding value of your mortgage reduces. It may be particularly important to you that you have mortgage life insurance to cover the value of repayment, as this avoids your family facing the considerable capital cost of your monthly payment along with interest.

Mortgage life insurance has become an increasingly important financial policy because of the increasing number of consumers who opt to buy property. Low interest rates and falling house prices have acted as incentives for first-time and experienced buyers to snap up houses and premises. Many are simply unaware of the advantages and disadvantages of protecting it through insurance. The question whether mortgage insurance vs term life insurance is better for their family's unique situation is still being asked.

Indeed, some consumers have opted to buy critical illness coverage instead, which insures that the mortgage is paid off in the event that you get seriously ill. To some extent this is a sensible strategy: 25 percent of men and 20 percent of women suffer a critical illness even before retirement. You may also purchase critical illness coverage along with life insurance for mortgage, to safeguard against the financial implications of both critical or terminal illness and or death. But what if you want to play your luck and assume you will not get critically ill: is mortgage life insurance always the best option?

Disadvantages of Mortgage Insurance

A disadvantage is that it may not pay anything out if your mortgage payments are complete before you die or become terminally ill. This sounds like a strange problem but many people would be happy to know they were going to live so long! But in terms of finding good value in a life insurance policy, this may act as incentive to look elsewhere. Indeed, one option is to simply pay for a standard 30 year term policy that would ensure your loved ones receive the full death benefit at the time of your demise. They would then have considerable freedom to use this money to pay off the mortgage or even redirect it to other costs, such as childcare and education costs, if they believe these needs are greater. However, be prepared for a medical exam if you opt for a standard policy, which is worth bearing in mind if you suffer from health conditions that could result in higher costs