By the term mortgage we understand the term loan. It is actually obtained through various insurance agencies. The modality of the mortgage is essentially like any insurance policy. This is basically availed for the house one buys. The whole idea behind mortgage is the safety aspect in case of any mishap. There are basically three types of mishaps that come under mortgage, namely- loss of job, any kind of disability and death.
The working of mortgage protection is like any other insurance policy. The two main points of consideration while taking the policy are the person’s age at the time of availing the policy and the health condition. Insurance people will see all the details of the disease in terms of its effect on the human life.
Various organisations offer lucrative offers for mortgage. They will have premium notifications on monthly, quarterly, half yearly and yearly basis. These agencies offer varied prices and usually workout a premium which is easily affordable by the concerned person. These offers are not same for each individual and vary as per the person’s health and the age factor. So basically a person of age 45 and suffering from diabetes will have a different set of policy from a person aged 50 and with heart problem!
The mortgage agencies have a different premium notification and offers, for the kind of job that the concerned person is engaged in. Example, the person doing a high risk job like window pane cleaning and plumbing will have a different policy offer from a person who has a cushiony job of sitting in the office for the entire day!
The payment terms for the mortgage protection policy also varies in terms of the nature of disaster that befalls the concerned person. In case of a job loss, the amount of policy money paid to the lender is different from the situation in which the person might get disabled while working. This payout is usually only partial of the assured amount. Only in case of death, the deceased’s whole policy money is paid to the lender by the concerned agency looking after his mortgage policy. In this case, the family need not worry about the mortgage payment.
The most important aspect of mortgage protection is the timely payment of premiums to get the best deals. Since the sum is assured before hand, it is easy to keep that particular amount aside for the same. Also before finalising on the policy it is necessary to work out the different formalities like the cost one has to bear, the aspects covered by the policy, the amount of payout that can be expected, payment details and certain other features that the policy might offer.
There are numerous agencies offering mortgage protection or loan. It is up to an individual to see all the pros and cons and then go for the best as per his suitability!
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