BURNABY, British Columbia -- In the event of death of the insured person, the insurance company will use the policy amount to pay off the mortgage outstanding amount. The legal heirs of the individual will not be required to pay off the loan. In certain cases, the mortgage insurance also provides insurance cover for the life of the individual. It ensures that in case something tragic happens to an individual, the mortgage repayment is not suspended and is repaid by the insurance company promptly.
Being a new financial instrument, there is too much off speculation and confusion relating to mortgage life insurance. Sadly, most people fail to appreciate the numerous benefits that mortgage insurance can provide to the loved ones of the insured person. One of the good things about mortgage insurance is that, one need not pay for the insurance cover that is not required. The value of insurance decreases with the mortgage repayment, hence, lesser the amount due to mortgaging company, lesser will be the insurance amount and so on. This is popularly known as decreasing mortgage insurance in the insurance industry. The usual life term of a mortgage policy is the life of the mortgage; however, it is possible to alter the policy period depending on individual requirements.
For instance, it is possible to add additional medical cover to already existing mortgage life insurance. The premium amount and the cover will also increase proportionally. In such cases, the insurance company will take care of the repayments until the insured person is healthy enough to resume work. This is typically more important and beneficial in the case of professionals whose income from salaries is the prime source for mortgage repayment. In case the insured person has dependent family members who are not earning any significant income, these kinds of insurance policies will come in handy to take care of large liabilities like mortgage loans, vehicle loans, etc. The right amount of premium and cover can be determined with the help of a financial advisor.
It is also worthwhile to note that tax exemptions are available in most cases where an individual contributes money to insurance cover. A certain percentage of the policy amount paid can be availed as deduction from taxable income while computing tax liability. Proper financial planning along with some insurance cover is just what every individual needs to put his and his family’s life in safety nest. It is quite common to feel lost when looking for the best mortgage insurance. However, a little bit of homework, research and questioning will help in finding the right insurance policy that will secure the financial future of family members who are incapable of meeting huge financial liabilities.
For more details visit here :- http://shelterbay.ca/lifeinsurance/mortgageinsurance/
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