A mortgage insurance beneficiary is a person you name to receive the proceeds from your insurance policy. If you die before you pay off your mortgage, your beneficiary can use the funds to pay off your debt and keep your home in good condition. Your mortgage insurance beneficiary can even choose to use the money to pay off other debts. Choosing this person is one of the most important decisions you will make in your life. Read on to learn more about this important decision.
Mortgage Insurance Beneficiary
Mortgage protection insurance (MPI) works in a similar way to a term life insurance policy. You pay a monthly premium to keep your policy current. If you die, your policy will pay the mortgage balance, up to a certain limit. Your mortgage payment insurance policy may have a different amount of coverage and limit. Make sure you understand the limits of your mortgage payment insurance policy before you choose this type of protection. For instance, a policy may pay out for only the first few mortgage payments.
A mortgage insurance beneficiary may also receive the death benefit if the policy owner dies prematurely. Mortgage life insurance is a good idea for young couples who have children, as the death benefit will pay off the mortgage in the event of the death of the first homeowner First Time Buyer Swindon. While mortgage life insurance may not be worth as much as a term life policy, it is still important to consider the amount of coverage to ensure you and your family are financially stable if something were to happen to you.