While owning a house may be your long coveted dream, it is necessary to plan all pertaining details with care. This is even more essential when you opt for mortgage, as is the case with most individual buyers. Suppose an unforeseen circumstance prevents you to repay your mortgage. In such an instance, you may have to lose out your precious property to the mortgage lender.
To avoid this type of a mishap you require opting for mortgage protection insurance. This insurance coverage helps you complete your monthly payments and retain your real estate asset as well. This is especially advantageous in case you are out of work because of redundancy or health issues.
Individuals often consider what the policies cover, neglecting what it does not. Here is a quick glance at the circumstances under which you may not get coverage from the policy. Only when you are aware can you exercise caution and avoid pitfalls. Here are the conditions when you won’t be paid:
*If you resign on your own
*If you are fired for misconduct
*If you are involved in illegal activities and are fired for the same
*If you suffer from a chronic illness and has not mentioned it at the time of taking out the policy
*If your illness is persistent or comes back at regular intervals
*If you suffer from back injuries that makes you unable to work
*If you suffer from stress related health problems and are unable to work
*If inability to work involves pregnancy (however, payments are made in case of medical complications associated with pregnancy)
In most cases, your mortgage lender asks you to avail a policy they offer. Or they might recommend a company that offers mortgage protection insurance. However, it is best to avoid these as the premium rates are higher compared to individual policies you choose. Check out policy details, compare rates and then only opt for one. Take help from a reputed financial service to get the best and effective solution.
