Life insurance is one of the insurance that covers unpredictable life events and provides safe future of their dependants. It is even more important when you have a mortgage as it gives you peace of mind knowing that your family is protected no matter what. Here are five reasons why you need to get life insurance when you have a mortgage:
A house is one of the most valuable assets
People take out different types of insurance; from car to medical insurance, fire and work related injuries, among others. If you own a house with a mortgage, this could be one of the biggest investments you ever had; therefore it makes a lot of sense to insure it. Actually, it should be one of the first things that you do when you take out a mortgage. It will help safeguard your most valued investments.
Protecting your family
The loss of a breadwinner can decrease the family income and drastically affect their lives; this is more so if you only had an ordinary life insurance. They will be left with little to payout the remaining part of the mortgage. Life insurance with a mortgage will cover to the extent that the pay out from the life insurance will not only help the family get back on their feet but also ensure that mortgage payment continues without hurting the family financially.
It actually works for you
Taking out Life insurance when you have a mortgage is a protection which benefits you as opposed to private mortgage insurance which covers the lender against probabilities of defaulting. With this type of insurance, you are also less likely to be denied a cover based on health reasons or other factors. You should understand that the premiums will be lower when you are taking life insurances when you are young and healthy. When you are older, you start thinking about life insurance more seriously but you will wish you got locked in the lower price years ago.
You get peace of mind
With this insurance coverage, you are assured that your family will not be heavily affected when you are no longer there, and they will continue to enjoy the same lifestyle.
No-one wants to think about the worst but it’s a small price to pay for that piece of mind knowing that your family will be alright and not devastated financially if unexpected disaster hits your household.
Life insurance usually comes with some degree of flexibility with regards to payments. It could be paid in a lump sum to cover the mortgage in full in the event of death or using monthly installments in the event you become disabled, ill and can’t cover the payments. That’s the time when you don’t want to get extra stress worrying about how to make your mortgage payments and if you have like insurance with life benefits you will be covered.
If you are in the process of getting a mortgage and want to know how much your life insurance is going to be, send a request for the quote to email@example.com and one of our life insurance specialists will get back with you.