Bought a new home? Now buy the peace of mind for the family – insurance of your investment. The excitement of a new home continues for an extended period but don’t forget to take another critical decision. It’s essential to gather proper awareness about the various types of insurances and their pros and cons.
The Mortgage life insurance is to protect a repayment mortgage. In case of the death of the policyholder, the policy pays the capital sum that is just sufficient to repay the outstanding mortgage. On the other hand, the Term life insurance takes the responsibility of the insured or his or her beneficiaries including consumer debt, dependent care, education, funeral costs, and mortgages.
The Term life insurance gives flexibility to the family to use the money for whatever holds the higher position in your priority list. Also, the Term life insurance is often cheaper than the Mortgage life insurance, especially if you’re healthy. But for the mortgage life insurance, you don’t need to go through the complicated medical checkups and evaluations. The procedure is simple but as explained the costs involved are higher. Thereby, the cost-benefit ratio of the Mortgage life insurance doesn’t stand well ahead of the term life insurance.
Talking about the portability, if you change the lenders or sell and buy a new home, it entitles you to apply for a new mortgage policy whereas the term life policy stays with you. Thereby, the Term life insurance saves you from the cumbersome process of applying again.
The Term life insurance covers the accidental deaths as well as the deaths from the health issues, but the mortgage insurance doesn’t include the deaths related to health issues. It is the fundamental reason that the term life insurance goes through the proper health check up in the beginning. The death benefit in mortgage life insurance covers the death benefits only and not the burial costs or other debts.
There are plenty of things to know before taking a decision. Visit the website HealthIQ for more in-depth analysis and resources. There are a few differences amidst many similarities. Get the picture clear. One must jot down everything regarding the expenses and the needs of the family and then evaluate what works the best for them.