Mortgage Life Insurance
Mortgage Life Insurance is a form of insurance specifically designed to protect a repayment mortgage.
Common mistake made by applicants when they sign the insurance papers along with the mortgage papers in which they end up buying creditors insurance most of the time whereas if you buy you own Life insurance which will be designed as per your family needs and you will own the policy and Face amount of insurance will remain the same for the term of insurance as contrast to Bank insurance which is declining over the period of time as per your Mortgage Balance.
Below are the major points which will differentiate your own Insurance from Bank Policy:
- Owner – you will own the policy as compared to bank policy which bank owns and you pay.
- Beneficiary: your own family member will be the beneficiary whereas in banks policy bank will be the beneficiary.
- Declining Face amount: face amount in creditor insurance will be declining which is attached to your mortgage balance wheres the face amount of your own insurance policy will remain same till the term of policy you bought.
- Renewable and Convertible: The most attractive feature of your own insurance policy is if you want you can renew and convert it to permanent plan whenever you want without any medical evidence to insurance even though client suffered with critical illness.