Huntsville, AL (PressExposure) April 17, 2009 -- This is because a mortgage insurance policy gives them and their family the peace of mind of having the mortgage completely paid off upon their death. The family will then be able to avoid any kind of drastic change in lifestyle or even possibly losing the home. Other names for mortgage insurance are mortgage protection, mortgage life insurance , mortgage protection insurance , mortgage insurance protection, and mortgage protection life insurance.
Who Needs Mortgage Insurance?
In single-income households or families in which one partner earns the majority of the money, many people think that the only person who needs to be insured is the primary bread-winner. However, it is likely that the death of a non-working spouse, or one who works part time, can also have a serious impact on a family's ability to continue to make mortgage payments. Therefore, a family should discuss all possibilities before making their final decision.
The Importance of Mortgage Insurance
Mortgage insurance coverage should be extremely significant if one's family is a real matter of concern to them. The death benefit is given directly to the beneficiary(ies) and not to the lender, which gives them control over how to best use the proceeds. They can also use any excess proceeds for credit card debts, auto loans, tuition, funeral/burial expenses, nursing home costs, and/or income replacement (everyday household expenses).
For many families, making mortgage payments would become difficult or even impossible in the event of the death of one or more members of the household. Before investing in a home, it is important to stop and think about how the mortgage payments would be made if a major source of household income were to pass away.
When choosing a coverage amount and term length, the most important thing is to make sure that your family is protected even under the worst possible circumstances. When everyone thinks about the alternative, the cost of mortgage insurance really seems to be quite small. When one purchases a mortgage insurance plan , they are investing in peace of mind for the entire family.