Mortgage Insurance
When a family provider, with a mortgage on the home, pass away, can the family service the mortgage? If not, this article is for you.
The simple truth is that very few families can service a mortgage on one salary, and if the unthinkable happens, the remaining family risk losing the home to the lender.
The way to avoid this horror scenario is to take out insurance and there are in general two routes to go down. When you take out a mortgage the lender often offers mortgage insurance. That is a group life insurance, where the lender gets the mortgage paid, should the person taking out the mortgage pass away.
It sounds like a good idea, but in reality there is an even better one. Instead of taking out a group life insurance, take out a separate life insurance, using a skilled broker, where the insurance is paid out to the remaining family instead. It gives you the possibility to decide if you want to repay the mortgage or keep on service the debt and use the money to other purposes.
Friends: