Who Does Insurance Protect?
Mortgage life insurance is simply a life insurance policy on the homeowner which will allow their family or dependents to pay off the mortgage on their home should something tragic happen to them. This is not mortgage default insurance, as lenders require this coverage if you have less than 20% equity in your home. MLI is better coverage to protect the family of a homeowner and not the mortgage lender itself.
How Much Does Life Insurance Cost?
If you were to pass your mortgage would be paid off, is it necessary for you to pay for this service? You may already have an adequate amount of life insurance then the answer might be no.
Assuming you are the primary breadwinner in your home and your death would leave your family without the means to pay for the mortgage, then mortgage life insurance might be a good option.
How To Apply for Mortgage Life coverage?
When looking at insurance policies, it’s important to know if the policy is portable, and backed by a large organization. A professional mortgage broker will take you through the ins-and-outs of insurance. By evaluating what you really need, and the differences in coverage and costs, you can make the best decisions for you and your loved ones.