Mortgage Life Insurance can be defined also as Private Mortgage Insurance (PMI)
Mortgage Life Insurance can also be defined as Private Mortgage
Insurance (PMI) which designed to protect the lender or the title holder in case the borrower defaults on payments for any reason,
Or passes away, or any other problem makes him unable to meet the contractual obligations of the mortgage.
FAQ About Mortgage Life Insurance
- How does mortgage Life Insurance work?
Mortgage Life Insurance is considered term insurance for a limited period; it started after the following steps done:
1- Choose the covering amount which you think is enough to help with mortgage repayments.
2- choose how long you want your policy to last.
3- Agree on how much your payment will be.
What Mortgage Life Insurance covers?
Since it has a specified period of coverage, generally 15 to 30 years and the death benefits may be fixed for the first few years after activation but decreases over time.
What are the restrictions of mortgage life insurance?
It would help if you kept in mind always that mortgage life insurance, unlike term life insurance, MLI), pay the death benefits to your Mortgage lenders with more additional restrictions than some policies. Still, the spending of death benefits will be paid only in case of death due to an accident.
Do I need a medical exam to mortgage life insurance?
No need for a medical exam before buying a mortgage life insurance.
How much does mortgage life insurance cost per month?
It costs monthly between 0.25 % to 0.50% of the loan amount each year, which is about $65 monthly.