When it comes to mortgage bond, basically you have three choices. These are:
• PMI or personal mortgage insurance,
• Life insurance mortgage bond and
• Mortgage protection insurance.
The first offers you to purchase bond when its value covers at least 80 percent of your premises. It has no health and other tax benefits. Next comes, life insurance mortgage bond. This type of bond is beneficial simply because the interest rate remains same till you pay the loan. Your home remains safe even if you die accidentally. Your selected beneficiaries (generally your family members) can pay off the loan after your death.
Mortgage protection insurance is better for its so many benefits. It offers tax exemption facilities for certain situations. It considers tax benefits for bond holder those are seriously ill, physically disables or occupied in riskier jobs. Before you get a quote for your home, it is better the facilities of it. You can find out more benefits when you have a standard bond.
Mortgage protection insurance offers you to maintain your insurance even if you lose job or have an accident. Generally, these types of insurance provide a time line of 12 to 24 months for mortgage coverage. However, based on your physical and financial status there may be change. For instance, in most case standard mortgage protection insurance offers an extension period up to two months if you retain your illness after this time limit.
Cost of mortgage protection insurance can differ according to the issuing bank. Generally, cost of MPI is less expensive. There are some factors those determine the cost of mortgage protection insurance. For instance, cost of MPI including the monthly premium increases as you become older. As such, a bond purchased by a person aged 25 will be less expensive than that by one of 50.
Whenever you get a quote, make sure that it is profitable for you. Find out more information regarding a bond before you purchase it. Before you get a quote, think twice which mortgage coverage will be profitable for you. Find out more information on advantages and disadvantages of mortgage insurance before you get a quote.
8th Blog on: (find out how to protect your family, discover how you can find peace of mind)