Getting a mortgage is hard enough, what with all the terms like "fixed rate," "discount," "variable," etc., so when you hear the words "mortgage insurance," your eyes will probably start to glaze over.
But mortgage insurance is a very important insurance to have. In fact, it can mean the difference between staying in your home and having it taken away.
If you just got a mortgage, the lender may have asked you if you wanted insurance to cover your mortgage payments. It might have seemed expensive and pointless. Even though some companies like to charge too much for their products, this doesn't have to be the case.
As for whether you need it or not, if you buy the right policy at the right price, it will be a great safety net for you. So, what is insurance for a mortgage? It is a product that will pay your mortgage if you can't because you lost your job, got sick, or had an accident and couldn't work.
Your mortgage payments and sometimes other costs related to your mortgage will be paid for up to a certain amount of time (usually 12 months, but this can change from provider to provider), giving you time to find a new job, get better, etc.
Many people may think that mortgage payment protection insurance is a waste of money because, as the old saying goes, "It'll never happen to me." But this is not the case. Anyone can get sick, hurt, or fired from their job without choice, leaving them unable to work and struggling to get by on state benefits. It doesn't care who it hits, and it can happen to anyone at any time.
So, if you work more than 16 hours a week at a full-time job and have a mortgage, it makes sense to get insurance to protect your finances in case something happens.
In spite of what the media says, this kind of insurance doesn't have to be expensive, and you don't have to buy it from your current mortgage lender. This means that you are free to look around for a policy that protects you well and doesn't cost a lot.
If you're looking for mortgage protection insurance, don't just take the first quote you get. Premiums, terms of the policy, and benefits can all be very different.
Do your research—you can compare policies quickly and easily on the internet—and then make a decision.
