If you have arrived here, it is likely that you have made quotes on mortgages and have noticed that, in amortization, there is a section for life insurance. This has made you wonder: what is it for and why should I hire it?
Life insurance is a coverage that we acquire so that our family receives compensation in case we lose our lives. In this way, we keep our loved ones protected before this circumstance.
The operation of life insurance in mortgage loans is similar
We hire them when requesting a mortgage so that our debt is not pending and must be paid by the guarantor or our spouse.
In other words, mortgage life insurance will be in charge of paying the debt we still have with the bank (beneficiary of the policy) in case we die. In this way, the loan will be repaid and our family can enjoy the property without having to continue paying the mortgage.
What is the coverage of life insurance in a mortgage loan?
You should pay close attention to the type of insurance you are hiring when acquiring your mortgage to know specifically what your coverage is. Although in most cases it protects you against:
- Death: Mortgage life insurance will take care of your home loan in case you die. This is very useful to protect your spouse or guarantor from the mortgage payment.
- Terminal illness: If the debtor suffers from a terminal illness with a life expectancy of less than one year, you can make the insurance policy effective and the loan will be terminated.
- Disability: In some cases (make sure your insurance has this coverage) the debtor is protected from an accident that leaves him unable to perform his work activities.
In conclusion, mortgage life insurance
Is a coverage that you contract in case of death so that you can take care of all the money that remains to be paid. The beneficiary of the policy is always the bank and generally, it is a mandatory requirement to acquire a housing loan.
Want to know more? We invite you to contact one of our advisors to give you more reports on mortgage life insurance. Call us! We will advise you whenever you need it!