Mortgage Repayment Insurance

The function of mortgage repayment insurance is to assist in the protection of owners of a home in the event that it has become hard for them to repay the mortgage. A good example is when the borrower becomes incapacitated by disability or disease or if the borrower dies before paying the whole amount to the bank. In this case, the insurance company will come in and pay the amount that was outstanding and the next of kin will own the house fully, with no more debts to the bank. Not everyone is eligible for mortgage insurance; there are some conditions you have to fulfill to be eligible for an insurance package. First of all, you need to have updated the entire amount you owe to the bank. There should be no current outstanding debt to the bank and you must have a good credit score. You have to have a stable income and you have to prove your capacity to pay monthly premium on the policy you are applying for. The monthly premium on this insurance policy varies depending on many factors; the company, the policy and of course the mortgage repayment. Different companies have different packages and you will be restricted to the insurance companies within your area of residence. Insurance packages vary from person to person because of the specific conditions of their mortgages. Coverage ensures that you have peace of mind in the event that you are incapacitated for more than two weeks. The policy will ensure that your mortgage payment has been paid off until you are able to resume paying the debt by yourself. This is just one of the conditions that the policy takes care of. If you have lost your job, the provider will pay up to 50% of your monthly payments to the bank until you are able to get a new job. If your salary has been delayed and you are in financial straits, your policy provider can pay for you monthly payments depending on the terms and conditions of the package. There are some terms and conditions to the mortgage protection insurance e.g. ensuring that your unemployed status is official-by registering with the unemployment office. There are tens of loopholes in the terms and conditions that could leave you with no protection even after the payment of the insurance. Make sure you are fully involved in the processing of your insurance policy and search for legal advice if you have to.