You might have watched in movies or heard real life stories of families trapped in debt cycles because the primary earner passed away. Many a times, they are forced to sell or foreclose their home/property to pay off the debts imposed on them due to the sudden death of the family member. Not only is the family under financial crisis, but this kind of a situation also puts a lot of responsibility over the surviving members. They need to find some other place to stay and their lifestyle gets disturbed. This is where mortgage life insurance comes into the picture. With this insurance policy, you can ensure that your family doesn’t go through a breakdown after your death.
Benefits of Mortgage Life Insurance:
- It covers your Debts: The first and foremost benefit, your debts would be paid off by the bank in case you die. You can choose a plan and agree to pay small amounts of money regularly. And at the time of your death, the beneficiary would get a sum that you and bank agreed upon earlier. This sum of money would then be used to pay off the debts.
- First things First: If you get critically ill one day, your family would want to focus on your recovery. However, you might be worried about the pending debts. But thanks to mortgage life insurance, you have an option to avoid such a scenario. This policy would ensure that you and your family focus on your recovery, not on the situations that would be going to arise after your death.
- No Health Checkup Required: One thing that differentiates mortgage life insurance from other life insurance policies is that you would not need to go through a regular health checkup. So, you can go for this insurance even if you have some medical condition. Not to mention, your time would also be saved if you want an insurance at the earliest.
Features to look for while choosing the Policy
Since mortgage life insurance is something different from the usual policies, it would be good if you compare the features and benefits provided by various corporations. Choosing a good policy might make all the difference after all. Look out for the following features:
- Experience matters. Do not go for a bank that just started last year just because it was giving you some promotional discount. The established banks would have numerous options and their advisors would help you to choose a policy tailored according to your requirements.
- Look for a flexible policy. Find out what happens in case your mortgage amount reduces or if you change your lender at least once. Go for a policy that would allow you to adjust these changes in the monthly premium.
- Some banks provide a policy review period of 30 days. In case you have this option, go for it. If you change your mind about the policy, it would be a safe option.
You must realize that death is inevitable and in case it comes unexpectedly, your family shouldn’t be the one to suffer. Mortgage life insurance is no doubt a smart way to ensure your family’s comfort even after your death. So don’t have second thoughts and go for it right away.