Mortgage Life Insurance: Is It A Boon Or Bane?

Cut through the jargon to find out exactly what mortgage life insurance does for you and if you need it.

13:00 18 March 2013

With tonnes of different insurance products and programmes available to homeowners, information is bound to become slightly confusing at times.

 

Mortgage life insurance may be one of those financial matters which deserve clarification, so you can make an educated decision about whether or not you want to have it.

 

First of all, what exactly is mortgage life insurance?

 

Mortgage life insurance simply means that if something happens to a homeowner there is insurance included which will pay off the remainder of what is owed on the home.

 

How does mortgage life insurance benefit you?

 

• If you have a spouse living in the house, you have the comfort of knowing they will not be forced from their home due to economic issues.

 

• This could be important for your heirs. If you will be leaving the house to someone in your family, choosing this insurance can mean they will not need to worry about a monthly house payment.

 

• Even if you are leaving the home to someone, if it  is paid off they have the option of selling the home and being able to split the profit (if there are multiple people in the family) or use the profit in a way which works best for them.

 

Do you need mortgage life insurance?

 

This coverage is not required, so the answer to this question depends upon your own circumstances and those of your family. It essentially allows you the opportunity to significantly help those you care about maintain either a paid-for home, or to give them the means to attend university, pursue a dream, or establish savings.

 

The decision is up to you and whether or not you feel is offers a valuable benefit to you.