The biggest reason to get a mortgage plan is the peace of mind you wish for yourself and your loved ones. With such a plan, you get the protection against unexpected situations which includes but isn’t limited to unemployment, sickness, unfortunate accidents as well as the death of the borrower. This means, if you lose your job, you will receive a certain income from the insurer to make the monthly mortgage and keep the mortgage going. This income will vary depending on the total loan amount and cover provided in a plan. Also, if you fall ill or meet an accident, you won’t have to worry about mortgage premiums and in case you pass away, the outstanding amount will be waived off and your loved ones can live in the same house with paying for anything.
There are people afraid of buying a mortgage plan due to its long loan tenure. Depending on the total loan amount the loan tenure varies for different properties. If you are planning to buy a home with a bigger loan amount, the loan tenure may extend up to 30 years which is quite long. However, there are providers offering a good discount and you will have to pay for a reduced loan tenure. Some insurers offer a discount up to 25 percent of your tenure and you’ll need to pay for the rest of tenure. For example, if you have a mortgage plan for 30 years, with a 25 percent waive off; you will have to pay only for 22 years.
Different insurers are offering mortgage plan at different price and you are supposed to buy one only after checking out all the top plans in your state. You can do that by filling a small form on online portals. There are insurance portals who provide mortgage protection quotes from multiple insurers at one place. You can fill your specific requirement and official agents from different providers will reach you to offer the best plans available. You can discuss your queries with them and get to know more about each relevant plan. Depending on the coverage, you can short top five or six plans and go with the cheapest mortgage insurance after comparing the benefits offered.
Another useful benefit mortgage plans are known for. At times, people buy a house and after some time, they plan to move to another place or buy another house for them. Mostly, the loan tenure is incomplete and they won’t be able to get another loan without repaying the existing one. These insurance plans provide a unique opportunity to transfer the mortgage to the new buyer of the house. You can sell your existing house to a new buyer and they will take care of the same.