Mortgage Life Insurance
Category : Insurance
Are you not aware of the term Mortgage Life Insurance? If your answer is ‘yes’, then it is an insurance policy that helps to settle your mortgage after your death, in case it is not fully paid. A decrease in the amount of insurance with the decrease of mortgage debt has made it mandatory to get the original mortgage life insurance that equals to the original mortgage value. According to the current situations, rates for the traditional mortgage life insurance plans are not as competitive as regular life insurance. Hence it has become inevitable to purchase the return of premium policy for mortgage life insurance. If the premium is returned while the policy is kept with you, all your payments will be paid to you.
Continue reading or click through the links and articles on this site to find out more about mortgage life insurance and how it can impact your family. Be sure to know all your options and protect yourself and your family in cases of hard times or self reliance. Preparation is always better than not being prepared. This includes taking care of your family.
Level premium is the best to purchase for any age such as 30 years or 25 years or 20 years and this provides a guarantee that the premium amount does not decrease along with the policy amount. Now the term Private Mortgage Insurance comes into existence that can also be known as mortgage Insurance Premium in USA, which is government sponsored. PMI is all set to protect the mortgage lender by paying for the loan. With the help of PMI, the debt is cleared by the insurance policy after the death of the owner. However while the principal balance decreases, there will be a decrease in the coverage amount. Owners of the property who have taken the mortgage are eligible for these insurance plans.
MIP can be the mortgage value percentage that one has to pay to the authority, issuing a loan. In the case of the USA, it is the Federal Housing Administration. This Organization provides loans after analyzing the equity of the borrower. Most often the loan insurer gets the percentage of amount from the load provider instead of the borrower. MIP fluctuates in percentage and can even be based monthly.
Private companies do not need 20% down payment for the loan and often issue the PMI. PMI can be cancelled if the outstanding loan balance is around 78% of the total acquired price of the loan. If the amount of loan is less than 80% of the value of the house or the property, then PMI can be cancelled earlier. However these require that payments must be made compulsory for the first two years.
Mortgagee’s title insurance is a term that protects the lender from others claiming the property that is mortgaged. If any mortgagor makes the claim successful then compensation is paid to the insurance company and mortgagor’s title insurance can protect the owner from any third party claims. GE, Insura and Genpact are some leading mortgage life insurance companies around the globe.