Choose a mortgage protection plan that meets your needs, not just the most affordable one. Mortgage protection plans with different benefits are offered at different prices and you should look into deep to understand what you actually need. Note down your budget-constraint and the benefits you are looking for and filter the available plans accordingly. Go with the plan providing maximum coverage at the best price.
Different insurers provide similar looking policies at different premiums. You are advised to read all the documents carefully to understand what all benefits you will receive in lieu of the premiums to be paid. Get in touch with multiple insurance providers and receive multiple quotes for mortgage protection. Compare those plans for the benefits they are offering and choose a plan that best suits your requirements.
Next big thing is considering the beneficiary. Now, it’s not necessary to make your mortgage company the beneficiary of your insurance. If you aren’t sure how your mortgage loan will be taken care of, you can name your loved one or a third-party trust as the beneficiary and be assured that your mortgage loan will be paid off timely.
Many insurers put on a penalty for premature termination of the policy. This means if you withdraw your policy before it matures, you will have to have a penalty for the same. Depending on the mortgage protection providers, this penalty fee may vary and you are suggested to check the penalty fees as well while going for a mortgage protection plan.
Mortgage protection premiums vary depending on the age and health of the insured and there’s a possibility that you might be asked to undergo a medical examination. The younger and healthier the insured is, the cheaper your premiums will be and hence, it’s advised to buy a policy at a young age. However, there are insurance providers offering an option to get an insurance without the medical examination. Such policies have premiums bit costlier than the standard policies but are great if you are suffering any serious illness.
Yes, you read it right! You can get your money back if you don’t use the benefits during the policy term. There are insurance providers that offer an advantage to return 100% amount submitted premiums, if the insured didn’t fall ill, or went off to work during the whole 20 or 30-year term. If you outlive the term which we hope you certainly will, you can use this money to plan your retirement life and invest in annuities. Also, you can pay for the kids’ college education or go on a vacation with your family.