What is Mortgage life insurance?

Do you need mortgage life assurance?

Today with the best mortgage rates prevalent in Calgary, a home purchase is very attractive. But suppose untoward health crisis/illness happens or even worse unexpected death occurs, how can your spouse/partner/children still get the house so lovingly purchased? How can they pay off your homes unpaid mortgage balance in the event of your sudden death/terminal illness? A mortgage life insurance can help in this bleak scenario by paying off the policy holders outstanding mortgage debt so the family gets a fully paid debt-free house.

Difference in mortgage insurance & mortgage life insurance.

Home purchase is a long-term, crucial financial investment involving an enormous amount of money and responsibility. Private mortgage insurance is most obligatory for the mortgage holder so monthly payments to lender can continue even when the holder is unable to work. But in the event of the holders death/terminal illness, mortgage life insurance policy helps in repaying the mortgage. It is a variant of life insurance policy that usually pays off the mortgage debt so the family/dependents of the mortgage holder need not worry about remaining mortgage or losing the house.

Mortgage life insurance options

The three types of mortgage life insurance policies are
Decreasing term mortgage life insurance.
Level term mortgage life insurance.
Whole life insurance coverage.
Usually mortgage life insurance is not a stand-alone product. Mostly it expires when the mortgage debt is paid off in total.
In decreasing term mortgage life insurance, amount assured decreases gradually over time and is nil when the mortgage is paid off. But in level-term mortgage life insurance, a fixed amount is assured whether it is claimed in the first year or at the very end of the mortgage period. In this kind of insurance, the monthly premiums are quite high in proportion to assure funds exceeding the mortgage rates. Whole life insurance coverage is very similar to the normal life insurance policy but with even higher premiums.

Additional coverage with mortgage life insurance extra

Some additional extra coverage clauses can be chosen to include in your mortgage life insurance policy that you can take with your mortgage at Alberta or any city. These are
Critical illness cover.
Waiving of the premium.
With such extra clauses at higher premiums, you get coverage even when alive but if diagnosed with terminal/critical illness; or if out of work due to illness/injury, you do not have to pay the premium.

What affects mortgage life insurance quotes?

The criteria for calculating the mortgage amount and monthly premium will be on the probability of your survival. Things considered are -
Sex.
Age.
Gender.
General health condition.
Other factors will be
Amount of your mortgage loan.
Your house value.
Your/family assets.
Length of coverage you need.
Your premiums can be paid monthly, quarterly, half-yearly or yearly. If you plan for rewriting your mortgage or thinking of refinancing/additional mortgage, you will have to rewrite your mortgage life insurance also.

Choosing the best
When you get guided by excellent firms like Mortgage select Ltd, you can be sure of getting the best mortgage rates in Calgary as well benefit from the best suited mortgage life insurance as well. To know more about mortgage life insurance and benefits, reach for
www.mortgageselectltd.com