Home Mortgage Insurance

Secure your most Important Asset

Considering Home Mortgage Insurance?

If you are planning to take up a mortgage on your home, you most likely will also be asked to take mortgage insurance by the lender. This is because most lenders are now very cautious about their business and wish to have some kind of a guarantee regarding their money being repaid back on time.

But this insurance is not only beneficial for the lender; the borrower can also take advantage of this insurance plan. If you are the policyholder of a mortgage insurance policy, you can be sure that your mortgage payments would be made on time even if you are unable to do so due to anillness, disability, or death.

Mortgage Insurance is usually a term insurance policy which can be bought as 10, 15, 20, and 30 year policies to cover a mortgage. Most of these policies will give you a level death benefit throughout the term. So, as your mortgage goes down over the years, your protection remains at the same level as when you bought it. Advantages of Home Mortgage Insurance

The main advantage of this type of insurance is that, though it is the borrower of the loan who is actually paying the monthly mortgage premiums, it is the lender who reaps the benefits of the policy, in case the borrower defaults on his payment because of illness, disability, or death.

Other Benefits

• Death (Pays off the mortgage when you die)

• Disability (Pays your mortgage payments when you cannot work)

• Critical Illness (In the case of heart attack, stroke, or cancers will pay you a lump sum of money from the onset or first diagnosis)

• Name your own Beneficiary

• You can take your own policy with you

• You can add or decrease coverage as needed

Premium Amount

Premiums can range from $35 a month on up depending on the plan you design, age, health, occupation, and if you smoke.

Termination of Insurance

You can always cancel you policy and in most cases you will not get your money back that you put into it unless you have a Return of Premium (ROP) rider attached. If you keep the insurance for the full term, you will get back 100% of your money. Some people like to cancel the insurance after 20 years, take some of the money from the ROP and use the money to pay off their mortgages early.

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