Have you just got your mortgage approved? You must be ecstatic; as now, you are on the path of being a homeowner. But, will you get mortgage insurance as well? If you think you are going to pay the monthly installments without any issue, then you are being ignorant. It is always better to play it safe, especially when you have a family to provide for. If you have a mortgage, then you must ensure it to escape in the time of financial troubles
Mortgage insurance allows you to protect your family in case of a fatal accident. An accident happens so quickly and often the victims are not responsible.
What do you want for your family if you can no longer contribute money to the family?
Your family is important, good mortgage insurance will protect your family in the event you are unable to contribute to the family. Imagine that your salary no longer goes into your bank account or your spouse’s salary.
How is mortgage insurance different from life and accidental insurance?
Many people say they don’t need it because they have accidental insurance and life insurance. But how much does life insurance cover? This is often twice the salary, which is clearly insufficient to cover the entire mortgage on the house. At this time, will your spouse be able to take on this new burden on his/her own?
Ask yourself the following question, will the people I love be safe if I become disabled (without income and in addition to having to pay for others). Will my family be able to stay in the house if I die?
If you answer no to any of these questions, you need to consider life and/or disability insurance.
So that what you would have wanted for your family to happen, that they are safe.
Are you at risk?
Mortgage insurance lets you know your family is protected. Do you have 6 months of savings, in cash that you can access at any time?
A job loss, illness, or work stoppage can deprive you of your salary for a few months.
Real-life cases: If you have opted for a service that offers support in case of an accident or disability, then the first payment from them will come after 5-6 months. How will you pay your bills during this time? Disability insurance can help you during this difficult time.
Did you know that mortgage delays could cost you dearly when renewing?
If you’ve had delays with your mortgage payments, the bank may not renew your mortgage financing. When a bank refuses to renew your mortgage, you have serious problems. You owe the banks a risk, and you could lose your home for lack of lenders.
With mortgage delays, banks will quickly issue an exercise notice against you, and from that point on, no bank will want to lend you. The only lenders you will find are often private with very high rates, between 8 and 15%.
Mortgage insurance is there to protect you when you need it.