The offered plans are designed to protect your home and the loved ones against the unfortunate incidents of life. Let’s get to know the benefits these plans bring with them. These plans let you buy a home of your own without paying the whole value of the property. You are supposed to pay an affordable premium every month and they will take care of the mortgage. This means, in case something happens to you, they will provide a lump sum amount as the death benefit to your loved ones to help manage their pending debt and essential expenses. Also, all the premiums will be waived off and your loved ones won’t have to pay anything. Your family members can keep staying in the same house without facing any financial burden.
There are basically two types of plans offered: decreasing term insurance and level term insurance.
Under these plans, you’ll have to pay a bigger amount as premiums while buying a plan and it decreases every year based on the outstanding loan amount. This outstanding amount decreases each year and ultimately reaches zero. These plans are great for buyers approaching their retirement as they will have to pay lesser after their retirement.
These plans have the same premium throughout the period and the insured needs to pay a fixed amount every month. The offered is recommended for the young homebuyers who earn receive an ordinary income during initial years of their career and can make the premium for their mortgage easily.
Sometimes, death benefits aren’t enough to take care of your mortgage plan. In case you fall ill or get injured in an unfortunate incident, you might have to stay away for your job and that will negatively impact your monthly income. In worst cases, it also may be tough to pay your mortgage premiums and hence you are suggested to get an additional cover for critical illnesses. You can add a rider to your mortgage plan and ensure a monthly income to pay your premiums, in case you get diagnosed with a serious disease.
Insurers provide multiple mortgage insurance quotes to interested buyers that vary depending on different factors. The age and health status of the buyer has a great role in deciding the monthly premium for every individual. For instance, if you are a young homebuyer, you will be offered a quote much cheaper than an older buyer. Also, if you have a sound health, you will have to pay a smaller premium in comparison to those who are diagnosed with a serious illness.
Though it’s true that buyers with a pre-existing medical condition are considered a high risk and hence offered an expensive plan, that doesn’t mean you should hide anything from your provider. You are supposed to provide the correct information about your present and past health conditions so that they can calculate the right premium for you. In case, you don’t disclose your addiction to smoking or alcohol or about any pre-existing disease and they find it after the purchase of a plan, the provider has full rights to invalidate the plan and you will not receive any benefit even after paying the premiums for so long.