Home, sweet home! There is no place like it. Home is where the heart is, where laughter is shared, where memories are made. Being home is being happy. Losing one’s home is one of the most unsettling things that could happen to us, exposing our family to the risk of being on the street. And yet, on a daily basis homes are repossessed and home owners are evicted. Mortgage arrears are among the primary reasons for repossessions. The untimely death of a partner or a parent can often make it hard for loved ones left behind to keep up with mortgage payments. Such life changing moments make mortgage protection relevant and necessary.
The purpose of Mortgage Protection Insurance is to protect our home that has a mortgage. If we have a mortgage, it’s a great idea to have a mortgage protection. So in case of our untimely death during the policy term, the insurance will help our loved ones pay off the remaining mortgage.
It is a sort of Life Insurance that covers the time period of the mortgage. Usually the value of a mortgage protection policy gradually decreases over time in line with our mortgage. Decreasing Term Mortgage Protection is the most common type of mortgage protection. Some people believe they can't afford life insurance as it is too expensive. The fact is, a decreasing term mortgage protection is probably is the most affordable Life Insurance product we can get. They are comparatively cheaper than the usual level term policies.
Some of us have a very dismissive attitude towards protection. Although we willingly insure our car, mobile, TV and even our sofa we tend to dismiss the idea of insuring ourselves, the most valuable asset. Such a flawed attitude can have far reaching consequences to the extent of leaving our loved ones on the street. If we can plan wisely for the long term, we will be able to protect our home and give our loved ones a secure life long after we are gone.
