So you have made the biggest investment of your life, i.e., the home of your dream. You might be wondering the best approach that you can opt to protect your investment when you are not here. Well, insurance will be the first way that will come into your mind. Now, the vital thing that comes into play is what type of insurance you should go for, term life insurance or mortgage insurance. There are some important differences between these two that people are not aware. Here you will find the difference between them so that you can you can pick the policy according to your needs. For instance, you can take this quiz by HealthIQ.com to know advantages and disadvantages of term life insurance for your children, mortgage insurance for homeowners and which policy will be the best for you.
Mortgage insurance pays the amount of your mortgage to the bank if the person who is listed on the mortgage leaves the world. In this way, the liability of the debt is not left on your family. Now, this option would appear convenient to you, but this convenience comes at some cost. The thing that you have to remember is that you are not going to be covered at the time of claim even if you are paying the premiums. Also, if you have some health issues at the time of applying and if you don’t disclose it, then your claim will be rejected. Well, there is no doubt that there are other financial obligations that need to be considered and having much money to fulfill the current needs gives peace of mind. But you should also know about some other options when you can’t meet your financial obligations.
Term life insurance often require a detailed screening as you have to provide your doctor’s contact details and have to share your urine as well as a blood sample. This type of insurance is attached to you rather than your debt. The rates on term life insurance would be much lower as compared to the mortgage insurance policy. Term life insurance is more affordable and gives a guarantee with your coverage.
If you already have term life insurance then applying for mortgage insurance will become easy for you. You just need to contact the insurance provider if you need it. You can visit HealthIQ.com if you want to take more life insurance quizzes. You can browse the site to explore many more interesting quizzes.