loan insurance

A mortgage is a long-term loan

Most of us, after some time has no plans to buy an apartment or wishes to build something of your own. To this end, we need to take out a mortgage. It is undoubtedly a good option, but not everyone knows that we can insure the loan in case of unforeseen accidents.

A mortgage is a long-term loan. It did not take a year or two, but often twenty or thirty years. The lender in most cases give us credit for 95% of the value of your home. The rest we have to pay ourselves. Virtually every bank requires us to purchase life insurance. It provides a protection for the lender in the event of our sudden death. Such policy is also extremely important for the family of the borrower. In the event of our sudden death or serious illness of our loved ones may be left without a roof over their head.

Life insurance

Life insurance or insurance from serious diseases makes that after our death or incurable illness, the family will not have to repay all or part of the mortgage. What is more, our loved ones will be financially protected.

A lot of institutions, although not all, require to purchase, ie. insurance against loss of income. It consists of “payment” substitute tax-free income in the event of incapacity for work due to illness or accident. As a result, in every moment we have confidence that we pay installments incurred by our mortgage and we cover all the necessary current expenses.

Mortgage insurance

In addition, when taking a mortgage, bank offers us a home insurance and property located in it. This option is quite extra, though, the more we have to deal with the institution, the greater the discount on insurance policy offers us. Home insurance is almost essential if our property is exposed to fire, flood or subsidence of land. Since the costs are not too big, you might want to not decide on it. Property insurance protects us from damage resulting for example, with burglary and theft, as well as against unintentional destruction of your belongings, eg. as a result of flooding of the paint during renovations.

Taking a mortgage we must bear in mind that the time for repayment falls theoretically on the half of our lives. The additional options in the form of insurance you choose, the more you can be sure that nothing will threaten us, our family, and our “four walls” that we have to pay for a long time. Although some policies are mandatory, so we can negotiate the terms until the bank will offer us the option that will be for our benefit. It is said, however, that necessarily we have to insure at the lender. The British market is full of insurance companies providing interesting insurances. To find the best offers, you can take advantage of Internet comparison ebsites. Remember, the more services you buy from one insurer, the greater the discount, bonuses and extras you can negotiate.

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