If you have slaved for a number of years to buy a home, you most likely have thought about ways to protect it.
That usually means that they obtain fire insurance, but what about the case where they could no longer afford to pay for the house? Insurance policies exist that protect the ownership of the home in case you cannot pay your mortgage due to death or disability. The mortgage and insurance businesses offer both life insurance and disability insurance on your home.
In most cases, if the salary of the main breadwinner is threatened, the family will not be able to continue to pay for the home.
If you are like a lot of people, you don't want to consider the fact of your death. But a good family man will want to protect his family in the case he is no longer there to pay the mortgage.
A mortgage life insurance policy will pay off the mortgage in case of the death of the insured. A decreasing term life policy is the one that most people choose since the amount of the benefit decreases over time as you are paying down more and more of your mortgage balance and the required life insurance benefit is lower.
The other type of popular mortgage insurance is disability insurance that will assure that the mortgage will be paid, even after the primary salary earner is no longer earning a salary. In this case, the home loan is paid out of the benefit of the policy. Some people think this is not a necessary insurance if they have disability insurance at work, but be aware that standard disability insurance only covers 60 to 70% of earnings, and that may not be enough to pay all expenses, including the home loan.
There may be even better reason to have disability insurance, since being disabled is a more likely event in a working person's life than death.
There is the added complexity that many households could not even afford a home if both partners were not employed, and they should have a joint policy. It can happen, for example, that a car accident disables both a husband and a wife who were together in the car.
That usually means that they obtain fire insurance, but what about the case where they could no longer afford to pay for the house? Insurance policies exist that protect the ownership of the home in case you cannot pay your mortgage due to death or disability. The mortgage and insurance businesses offer both life insurance and disability insurance on your home.
In most cases, if the salary of the main breadwinner is threatened, the family will not be able to continue to pay for the home.
If you are like a lot of people, you don't want to consider the fact of your death. But a good family man will want to protect his family in the case he is no longer there to pay the mortgage.
A mortgage life insurance policy will pay off the mortgage in case of the death of the insured. A decreasing term life policy is the one that most people choose since the amount of the benefit decreases over time as you are paying down more and more of your mortgage balance and the required life insurance benefit is lower.
The other type of popular mortgage insurance is disability insurance that will assure that the mortgage will be paid, even after the primary salary earner is no longer earning a salary. In this case, the home loan is paid out of the benefit of the policy. Some people think this is not a necessary insurance if they have disability insurance at work, but be aware that standard disability insurance only covers 60 to 70% of earnings, and that may not be enough to pay all expenses, including the home loan.
There may be even better reason to have disability insurance, since being disabled is a more likely event in a working person's life than death.
There is the added complexity that many households could not even afford a home if both partners were not employed, and they should have a joint policy. It can happen, for example, that a car accident disables both a husband and a wife who were together in the car.
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