Question:

What is mortgage repayment insurance?

Answer:

Mortgage repayment insurance, also called mortgage protection insurance, pays off your mortgage in case you are unable to - due to death or disability. Common coverage includes mortgage repayment in case of accident, death or sickness so that your family does not end up on the street.

Types Of Mortgage Repayment Insurance

The two most general types of mortgage repayment insurance are Life or Disability Insurance.

Mortgage life insurance pays off your mortgage in full upon death; the disability mortgage repayment insurance policy will make sure the lender receives the monthly mortgage payment for limited time.

These two basic mortgage insurance splits may have additional options:

  • Redundancy option that pays your mortgage for 6 months if you were made redundant.
  • Insurance premiums covered by insurer in case you lose your job.
  • Mortgage repayment insurance premiums are affected in case you are a recipient of social benefits, etc.

Is mortgage repayment insurance right for me?

Mortgage protection insurance will be right for you if you are single, young, and if all you want is to have your mortgage protected. If you are not, and even if you are single and young, it is always recommended that comprehensive life insurance is considered with priority to mortgage repayment insurance.

Final piece of advice: Monitor your credit report and score regularly, to ensure there are no inaccuracies or unauthorized activity. Your credit report and score are the two major methods that creditors and lenders use to make a credit decision about you. Higher scores usually mean lower interest rates, which will save you money.

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Common misspellings: mortage and morgage