When it comes to insuring your mortgage, it is important that you shop around for the best mortgage insurance available. There are many types of insurance policies available from various insurance companies, but not all of them are created equal. Not only do you need to compare apples to apples, but you also need to compare plans that fit your particular budget and lifestyle. Here are several tips to help you find the best mortgage insurance for your situation:
Shop around for the best mortgage insurance. The most basic type of mortgage insurance is the cash value or dwelling valuation premium. This type of insurance is based on your current market value and protects your lender from potential losses if you were to default on your loan. However, to make sure that you’re receiving the best mortgage insurance policy, be sure to speak to your insurance broker. Mortgage insurance policies are usually a long term commitment and surrendering your coverage before the end of the term may lead to a lapsed policy and unrecoverable missed premiums.
Shop for the best mortgage insurance plans. Some insurance companies will offer you the option of purchasing additional property protection insurance as part of your home loan. Others offer you the option to choose a policy term that matches your budget. Once you have determined the type of protection you want, you can start shopping around for the best mortgage insurance policy terms.
Invest in multi-cover policies. Many insurance companies will offer you the option of purchasing sickness or accident cover with your mortgage payment protection policy. These policies typically protect you against two broad categories of risks. First, they will protect you against any death or illness that is deemed to be terminal in nature. Second, these policies will also cover you for any loss resulting from a disability.
Look into joint mortgage life insurance policy. A joint mortgage life insurance policy will typically cover the mortgage payment protection cover of one spouse. Typically, a joint mortgage life insurance policy will have better premiums than an independent mortgage payment protection policy for the same face value of your home. This type of mortgage life insurance policy is particularly useful if you have a spouse who has a physical disability.
Combine your life insurance policy with a mortgage life insurance policy. When you purchase a mortgage life insurance policy and your other life coverages become nullified, you will receive a payout to help you make up the difference. The payout will be provided by your mortgage life cover, in most cases. Therefore, combining your mortgage life cover and your other insurance policies will help you receive your payout faster.
Decide on your final level term. In most cases, your final level term is the length of time you have left on your mortgage. Although it may seem short, a longer level term will help you to keep your mortgage cost down. For example, a five-year term would be best, as this would provide your beneficiaries with enough capital to support themselves for five years after which point they can apply it towards paying off your mortgage cost. It is a good idea to get a professional to help you calculate your level term to ensure that you get the best mortgage life insurance cover for the amount of time you will have left to pay it off.
Decide on a provider. Choosing a mortgage life insurance provider is not as simple as choosing any other insurance provider. Therefore, you will want to spend some time researching the companies you are interested in to ensure that you choose the best service for you and your family. There are some very useful websites available to help you do this. You can also talk to friends or family who have had mortgage life insurance cover to help you find out which companies they used and how their experience was.