Life Insurance Facts

Life  insurance mortgage is insurance taken against your  mortgage that ensures that in the event that you should die, your dependents will not pay towards the mortgage as the policy pays off the remaining debt. This is the case if you die within a specified number of years.Your mortgage debt decreases over time  and correspondingly, so does the potential payout.

The cost of your policy will be dictated by age, sex and general health. In other words the less likely that you will die during the policy term the cheaper it will be for you. Whether you smoke is a major factor, and premiums shoot up if you do. If you have quit, you need to be smoke-free for at least a year. If your death is found to be smoking- related, the policy is invalidated. The policy payout is fixed so the cheaper the policy, the better for you.

Use a credible company to draw up a Life Insurance Mortgage for you, keeping in mind that brokers are not all the same and that their commission levels vary. Be honest and open especially about medical and family histories. This eliminates the possibility of the insurer using the non-disclosure clause as a reason not to pay out. Check carefully before you buy the policy to make sure that the policy terms are right for you. Get proper advise and take your time at deciding.

If you own your home jointly with a spouse or partner you can go for a joint policy if you find that this turns out to be cheaper than a separate policy. It might not be . And if you take a joint policy, go for one that pays out on the first death. This is possible.

Most lenders will insist that you get a policy when you take a mortgage and for those with defendants it is worth considering. Most of the time you have no choice but to take up a Life Insurance Mortgage because it is mandatory when borrowing money.