Mortgage Life Protection As a Means to Secure Your Family"s Future
If there is one thing that is certain, it is that you will die one day.
It sounds harsh, but it is the reality.
The one big factor is that you cannot control when you die, or at which age.
Thus, it makes sense to protect your family from the financial implications, if something happens to you.
The biggest asset most people own is their home.
At the same time, the home is the biggest debt most people have and making mortgage payments takes up a large portion of people's income.
If you die unexpectedly, the financial situation of your family changes drastically and most of your life insurance will be spent on putting food on the table, education of your kids; in short, for your family to go on living a comfortable life.
If however mortgage payments have to be met out of this insurance, there might be very little left over for your family to live on.
Thus it makes sense to take out a mortgage life protection assurance policy.
Assurance instead of insurance, because you will die one day, it is a certain fact, while insurance means there might be a likelihood of something happening.
Essentially you are protecting your mortgage payments, leaving the rest of your financial wealth to your family to live on.
This takes care of the single biggest debt most people have, while ensuring your loved ones will be able to remain in their house.
Many people think that the premiums for this are very expensive, but it need not be so.
Even if you have Mortgage Life protection already, it makes good sense to shop around, and compare the different insurance providers, their rates and benefits.
It is also helpful to be informed, to see what insurance providers look for when assessing your rate.
The cost of a policy will increase with the mortgage size, and the length of your term.
Yet just as important is likeliness of your death during the term.
This means age, sex and whether you smoke are big factors.
This means that as a young, healthy 21 year old who goes to gym and eats health foods, you will be paying considerably less than a 47 year old who no longer exercises.
Disclose all your medical conditions when you apply for Mortgage Life Protection, as withholding information can cause the insurance company to use 'non-disclosure" not to pay out.
It's also worth noting prices can change daily, so if you're comparing a range of companies it's worth researching all at the same time so you can compare apples with apples.
You might want to think about the tax implications of the policy.
If you die the proceeds of your policy will go into your estate, which makes your dependents liable for a considerable inheritance tax.
However, if the policy is written in trust, the insurance pays out directly to your dependents and it does not become part of your estate.
This is legal, as long as it is done when the policy commences.
It sounds harsh, but it is the reality.
The one big factor is that you cannot control when you die, or at which age.
Thus, it makes sense to protect your family from the financial implications, if something happens to you.
The biggest asset most people own is their home.
At the same time, the home is the biggest debt most people have and making mortgage payments takes up a large portion of people's income.
If you die unexpectedly, the financial situation of your family changes drastically and most of your life insurance will be spent on putting food on the table, education of your kids; in short, for your family to go on living a comfortable life.
If however mortgage payments have to be met out of this insurance, there might be very little left over for your family to live on.
Thus it makes sense to take out a mortgage life protection assurance policy.
Assurance instead of insurance, because you will die one day, it is a certain fact, while insurance means there might be a likelihood of something happening.
Essentially you are protecting your mortgage payments, leaving the rest of your financial wealth to your family to live on.
This takes care of the single biggest debt most people have, while ensuring your loved ones will be able to remain in their house.
Many people think that the premiums for this are very expensive, but it need not be so.
Even if you have Mortgage Life protection already, it makes good sense to shop around, and compare the different insurance providers, their rates and benefits.
It is also helpful to be informed, to see what insurance providers look for when assessing your rate.
The cost of a policy will increase with the mortgage size, and the length of your term.
Yet just as important is likeliness of your death during the term.
This means age, sex and whether you smoke are big factors.
This means that as a young, healthy 21 year old who goes to gym and eats health foods, you will be paying considerably less than a 47 year old who no longer exercises.
Disclose all your medical conditions when you apply for Mortgage Life Protection, as withholding information can cause the insurance company to use 'non-disclosure" not to pay out.
It's also worth noting prices can change daily, so if you're comparing a range of companies it's worth researching all at the same time so you can compare apples with apples.
You might want to think about the tax implications of the policy.
If you die the proceeds of your policy will go into your estate, which makes your dependents liable for a considerable inheritance tax.
However, if the policy is written in trust, the insurance pays out directly to your dependents and it does not become part of your estate.
This is legal, as long as it is done when the policy commences.
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