Burgesses Insurance News has published an interesting article today looking at the rationale behind the purchasing of insurance as a protection vehicle, and questions why the public are disinterested and can’t be bothered when it comes to purchasing Mortgage Protection for the largest investment of all – a house!………..
It it just that the public doesn’t appreciate the risks?
Until it is too late….
Mortgage insurance – why be vulnerable?
First Published Burgesses.com July 27th, 2009 in Mortgage
Insurance |
Most people are thoroughly accustomed to one of the most
basic principles of insurance – if something is valuable, it is probably worth
insuring. Although the principle might be widely recognised in many other areas
of domestic life, however, for some reason it does not seem to be so readily
grasped when it comes to mortgage insurance.
Only an estimated 25% of the nation’s 11.7 million mortgage
borrowers are believed to have arranged this potentially indispensable for of
insurance. Given the sheer value of the mortgaged homes, not to mention the
dire consequences of defaulting on the mortgage repayments, the statistic is
surprising to say the least. Some three-quarters of borrowers seem to be
leaving themselves vulnerable to the most common risks to their incomes – accidents,
illnesses and unemployment – and with the loss of an income, the ability to
continue their mortgage repayments. More about Local Small Business NearMe Directory
The penalties for defaulting on the mortgage repayments, of
course, can be serious indeed. In the worst cases, it can lead to repossession
of the home itself by a mortgage lender determined to recover the outstanding
debt. But even if some arrangement can be reached with the lender, the
homeowner is still vulnerable. If mortgage repayments cannot be made, the home
might have to be sold – even though the current state of the housing market
might mean that such a sale realises less than the outstanding mortgage debt.
At the very least, the late or non-payment of the mortgage instalments as they
fall due will attract adverse credit reports on the borrower’s file. This will
make borrowing – or any other form of credit – more expensive to arrange in the
future, if the facility is extended to the individual at all.
This is a vulnerability that the homeowner can easily avoid
with mortgage insurance. The insurance can offer complete protection for the
mortgage repayments in the event that the policy holder meets with an accident
or suffers an illness that prevents normal earnings from work. The same
protection is also extended if the policy holder loses his or her job through
compulsory redundancy. In any of these events, such a policy will pay out an
insured benefit from which the mortgage repayments can continue to be paid – in
many instances, directly to the mortgage lender concerned, if needs be.
Once in payment, the mortgage insurance monthly benefit
payments ensure that the mortgage is repaid every month that the policy holder
remains incapacitated for work, involuntarily unemployed, or for up to a
typical maximum period of 12 months, whichever is the shorter time. Taking up
the option offered by some policies, payouts can be made over an even longer
period and extended for up to a maximum of 24 months, if an additional premium
is paid.
web: https://generalliabilityinsure.com/business-directory/
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https://moztw.hackpad.tw/Can-someone-claim-on-my-car-insurance-without-my-details-kWxn918BNl8
https://telegra.ph/Who-regulates-homeowners-insurance-in-California-02-22
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https://docs.google.com/document/d/1uhaatRtiTiEbrvKkPF2KQEEc4xXNVusCDc7jjW723GU/edit?usp=sharing
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