YOU ASK:

Why should I consider buying a mortgage life and disability insurance?

WE ANSWER:

Insurance is aimed towards protecting us from losses due to events that are not our fault and are not in our control. Can you imagine seeing your savings and investments on your home going down the drain because the family bread winner dies or is disabled? What impact would this have on the family, who stands to lose the property that they have long called home?

If you are the person named in the mortgage contract and you get insured with a mortgage life and disability insurance:

  • The balance of the mortgage is paid up upon your death. The insurance will pay up the outstanding debt so that your family can have the house clear and free.
  • The monthly mortgage amortizations are paid for up to 2 years. Depending on the kind of plan you get, your insurance will provide the monthly mortgage payments when you are disabled because of a sickness or an accident.

Mortgage life and disability insurance is a special kind of insurance that features a decreasing term. The life insurance coverage will decrease as your loan decreases, since you are paying for this monthly.

The advantage of mortgage life and disability insurance is that it is fairly easier to get this insurance than straight life insurance, since the underwriting standards for this are more lenient.

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