subject: Lets discuss details on Mortgage Protection [print this page] Lets discuss details on Mortgage Protection
The whole world is on the move of change. The old pattern of the world is been modified but not completely. The major issues such as peace, socio-economic development are still on their way towards stability. However it is much time consuming process as a decade is to be end and there isn't any single sign which will make these issues stable. In this changing pattern every thing is at risk. There isn't any certainty about the next 24 hours. At the moment you are much satisfied by your future and the next moment you face unexpected circumstances.
Even if you are living a happy life with family, risk is always there with you. You are not certain of your own life, your income, your health at all. The major risk with those families who had kept their property under mortgage is that they will loss it if they are unable to earn income and pay premium on that mortgage.
Mortgage protection
It is just like an insurance policy which helps you to make your future certain. If you are fired from your job or unable to make your livings due to any other reason,mortgage protectionwill pay your mortgage payments and in some cases pays you monthly income based on the type of policy you purchased.
Benefit of Mortgage Protection
If you have a mortgage on your house or any other property, or planning to take out a mortgage on it, you should know aboutmortgage protection. This will continue the payments of your mortgage, in case you face some unexpectedsituation and make you unable to pay monthly mortgage,and protect your property or home from forever loss.
Types of Mortgage protection
Depending on your choices and payment schedule there are mainly four types of policies offered. But if you want the insurer to tailor a policy with specific coverage then you can arrange any meeting with the company.
Life cover policy
This policy will pay your mortgage in the event of death. You may purchase single life coverage policy or group life policy. In single life coverage the policy will entertain the case if only the head or the person who is responsible for the mortgage is died while in group life policy, the case will be entertained if any of members is died.
Serious illness
This policy will pay your mortgage if you got any serious illness and unable to continue the mortgage payments. Along with mortgage payments, depending on your choice this policy will pay you in case of your illness as below;
Pays only for critical illness
Pays you after critical illness coverage
Free coverage for the expenses of children below 18 years old
Income Protection
This policy will pay your mortgage with monthly tax free income benefit. If you are unable to continue your job or business in case of self employment for long term, than this policy will benefit you.
Unemployment coverage
If you are fired out from your job or unable to continue your own business due to some other reasons and there isn't your fault, than the insurer will pay you fixed monthly payments along with your mortgage.
Payment and Coverage
Payment
There are mainly two types of payments. Either you had to pay cheaper in short term and bit expensive afterwards or initially expensive and cheaper in long term.
Coverage
Again the coverage is of your choice. You may ask for level coverage or decreasing life coverage. In level coverage you will given fixed monthly payments while in decreasing life coverage you will be given decreasing payments afterwards.
While the concept ofmortgage protection is nice you should go through all the terms and conditions regarding coverage and premium payments of the policy before purchasing. This will help you to know what your actual requirement is. For this you can search through internet and other sources. If you are confused which type to purchase, consult the insurer who will guide you in a better way.
