Mortgage Insurance Coverage - Are You Covered?
Having enough life insurance to not only cover the loss of income, but also your family’s other debts (such as house, car, credit cards, etc.) is a wise move. Even though it may feel like a struggle at the time if you have to scrape the funds together to cover the premium.
In the event the unthinkable happen, the house (and perhaps other debts) would be paid for and your family would have one less burden to worry about. Or, if you have Mortgage Insurance Coverage that is triggered by your disability or being unable to work (or disability insurance), then your family is covered if something should happen.
mortgage insurance coverage actually is such a good idea that many mortgage companies, in fact most of them, insist on it. That is wise on the part of the mortgage company because it provides them with additional security, and makes it easier for them to justify loaning you the money for your mortgage. From a business standpoint it really just makes sense both for you and for them. However, you are not required to purchase the life or disability insurance from the mortgage company, and you can usually get more coverage for less per month with a term policy through another company.
Take, for example, the case of Marie Jones. Marie and her husband Stan worked hard to get a down payment together to buy a home. They had three children and they both decided that Marie should stay home with the kids and quit her job. Stan had a good job and a nice paycheck so it wasn’t a burden.
A few years later, Stan was tragically killed in an auto crash, leaving Marie alone to provide for her children without an income.
Thankfully Stan had adequate life insurance to cover both the loss of income and the other debts. Marie received a check from the life insurance company large enough to support her and the kids until they were grown, and enough money to pay off the mortgage on the home. Marie and the kids no longer had to worry about how they would meet the house payment. The insurance covered it all.
Marie’s case is, unfortunately, all too common. Every year in America thousands of people depend on Mortgage Insurance Coverage when an unexpected tragedy occurs. Mortgage Insurance Coverage (or additional life insurance to cover the mortgage) can seem like a burden to those who opt for it, until they think about the amount of protection it provides. Having mortgage life insurance, for many families, has made all of the difference in security, in having a roof over their heads, and in knowing that their futures were secure.
Tags: Finances, Financial Management