Who Needs these Life Policies?
Anyone with a home loan will benefit from obtaining a protection insurance policy. If you are the main breadwinner for your family, however, purchasing one of these policies is particularly important. After all, if you should pass away, your spouse likely will not be able to make the required monthly payments toward the home loan. As a result, your spouse may lose the home.
The same is true if your spouse does work but you need both of your incomes in order to have enough money to pay the mortgage and to meet your other monthly obligations. In order to give yourself and your spouse peace of mind, it is a good idea to purchase a this policy.
These insurance policies are also a good option for those that are in poor health and have difficulty getting approved for other forms of insurance. Since these insurance policies typically do not require extensive health exams, it is generally much easier to get approved for one of these policies.
How Do I Receive the Benefits of a Mortgage Protection Policy?
The exact guidelines surrounding your life insurance policy will depend on the policy you decide to purchase. Some policies will only pay out in the event of your death. Other policies, however, will pay out if you become terminally or critically ill. If you default on your loan for reasons other than illness, your policy will not pay out the benefits.