5 Reasons You Must Have A Mortgage Protection Plan

by Anil Kumar ~ August 6th 2018

Mortgage protection insurance has been quite popular among the new homebuyers, credits to its benefits and flexibilities for helping the buyers own a house. Different providers in the markets are offering plans to the interested buyers to cater their specific requirements. Under these plans, the buyer pays a fixed monthly premium to the provider and they take care of the mortgage loan in case the insured falls ill or meets an accident. The provider takes care of the mortgage payments till the insured becomes fit and resumes the work. In this blog, we are going to talk about five reasons you must have a mortgage plan.

Lesser Down Payment

Usually, whenever you are planning to buy an insurance plan you are supposed to accumulate a decent amount to pay as the down payment. Most of the lenders ask for a 20 percent to 80 percent of the total value of the house which is a quite big amount for young home buyers. There are young people who are willing to buy their own home but don’t have enough savings to make the down payment. Mortgage plans make them eligible to buy their own home with a down payment as less as 3 percent. This not only realizes their dream of owning their own home but also provides the loved ones a place to live even if the insured passes away before repaying the loan.

Flexible Payment Options

Usually, mortgage plans come with a monthly premium plan but different homebuyers have different income sources and might have different payment preferences. There might be some buyers have saved some amount and would like to pay a decent amount as the down payment. Also, there will be some buyers who would have started earning recently and might not have enough savings. These buyers would like to pay a smaller down payment and a fixed monthly premium. Mortgage plans are known for providing different payment options as per the buyers’ specific requirements and help them own a house easily.

Access To Multiple Providers

Nowadays, the insurance market has changed a lot rather than how it used to be a few years ago. With the help of technology, now you have the option to reach anywhere and everywhere digitally. Now, you can easily get in touch with multiple providers online and get to know the different offers they are providing. You can discuss the various plans and choose the one with desired coverage. Also, you can know the various down payment options different lenders are providing and go with the one who provides the lowest down payment option. If you can’t decide which option is the best for you, you can get the services of an insurance expert who will ask for your specific requirements and then suggest the most suitable plan for you.

Protection In Job Loss

Life is full of uncertainties and you can never know what tomorrow will bring for you. At times people fall ill or meet an accident and can’t continue the work for a certain period. During this period, it becomes very tough to take care of medical expenses as well as the mortgage payments. One disadvantage of mortgage plans is that you are supposed to make the premiums timely and consistently and if you miss your premiums, the lender has the rights to invalid the mortgage plan. In case this happens, you might have to lose your house as well. Mortgage life cover plans help you receive a consistent monthly while you are off work so that you can pay the premiums timely and keep your mortgage going.

Mortgage Transfer

Another beneficial feature in a mortgage plan that can lot of money of homebuyers and save from troubles as well. At times, people buy a home with their hard earned money but after a period they want to move to some other place. Either they want to buy another home in the same town or want to buy one in a different city or state. But, the problem arises when the loan on the current property is still going and they want to move to another one. Mortgage life insurance helps you transferring one property with another. If you have a home with a mortgage loan but want to buy another, you can transfer the existing mortgage to another property and move into your new home easily.

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