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Is mortgage life insurance worth it?

Good morning, I would like to have some clarification about mortgages life insurance. I'm going to buy a house and obviously I had to apply for a mortgage. Some friends have advised me to take out a life insurance policy to protect my children in case something should happen to me one day. I don't know if I'm not foresight enough, but honestly I am a little sceptical about it. What do you suggest me to do? Is a life insurance really useful when you have to pay off a mortgage loan?

Wed, 20/11/2013 - 15:14

Comments : 0

Answers

3

AnswerWidget

Considering the relatively high cost of such policies, you could try to save money by opting for one of those life policies which imply a gradual reduction of the insurance premium to be paid with the decrease of the outstanding debt with the bank. Another way to save money is to opt for policies that provide for the advance payment of the premium in a lump sum. The overall cost will be lower compared to a recurring premium policy.

 

Tue, 01/10/2013 - 19:47

Mortgage life insurance policies are optional. Nevertheless, bank advisor always recommends customers to buy one since they say it can ensure greater serenity for the borrower and for his family. As you aid, these policies are intended to protect the borrower in case of events that could compromise his/her ability to repay, for instance death, illness, disability, injury, loss of job, and so on. Therefore, don't consider only the last tragic event of death! I wish you all the best but in this period of crisis losing one's job is not such an impossible event!

Furthermore, in some cases, the subscription of a life insurance policy is an essential condition for the granting of the loan, especially with old people. Yet, I have to admit that the cost is quite high.

Fri, 15/11/2013 - 16:25

I would like to point out that people often confuse mortgage life insurance with mortgage protection insurance. The first one implies that your family won't be in trouble in the event you die and your mortgage has not been completely repaid. The second one, which I think is even more expensive, is also much more useful and is actually what Elisabeth says: an insurance policy that helps you with your mortgage instalment in the event of disability or of loss of job. If you are not sure about your financial situations for the next years, maybe a mortgage protection insurance is what you need. Whatch this video for further information about the various types of mortgage insurance.  

Mon, 16/12/2013 - 12:10

Considering the relatively high cost of such policies, you could try to save money by opting for one of those life policies which imply a gradual reduction of the insurance premium to be paid with the decrease of the outstanding debt with the bank. Another way to save money is to opt for policies that provide for the advance payment of the premium in a lump sum. The overall cost will be lower compared to a recurring premium policy.

 

Tue, 01/10/2013 - 19:47

Mortgage life insurance policies are optional. Nevertheless, bank advisor always recommends customers to buy one since they say it can ensure greater serenity for the borrower and for his family. As you aid, these policies are intended to protect the borrower in case of events that could compromise his/her ability to repay, for instance death, illness, disability, injury, loss of job, and so on. Therefore, don't consider only the last tragic event of death! I wish you all the best but in this period of crisis losing one's job is not such an impossible event!

Furthermore, in some cases, the subscription of a life insurance policy is an essential condition for the granting of the loan, especially with old people. Yet, I have to admit that the cost is quite high.

Fri, 15/11/2013 - 16:25

I would like to point out that people often confuse mortgage life insurance with mortgage protection insurance. The first one implies that your family won't be in trouble in the event you die and your mortgage has not been completely repaid. The second one, which I think is even more expensive, is also much more useful and is actually what Elisabeth says: an insurance policy that helps you with your mortgage instalment in the event of disability or of loss of job. If you are not sure about your financial situations for the next years, maybe a mortgage protection insurance is what you need. Whatch this video for further information about the various types of mortgage insurance.  

Mon, 16/12/2013 - 12:10
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