WHY IS IT IMPORTANT TO HIRE A MORTGAGE REPAYMENT INSURANCE?

WHY IS IT IMPORTANT TO HIRE A MORTGAGE REPAYMENT INSURANCE?

When you ask for a loan or a mortgage, it is normal that from the financial institution they offer amortization insurance. This type of insurance, which also offer it independently insurers, is a very interesting product, and is highly recommended to anyone who requests a loan or a mortgage firm to hire him. Let's see in detail what is this type of insurance and the different types of products that exist.

Depreciation insurance are insurance aimed at people who have contracted a loan or a mortgage, and who want to have covered debt for their safety and that of his family, so that does not put at risk their property in the event of death. Normally, you can also hire an additional guarantee for absolute invalidity.

Put another way, the amortization insurance aims to protect the lender against possible non-payment due to the death or disability of the borrower.

For the payment of depreciation insurance premium, it can pay fractional form (monthly, quarterly, semi-annually or annually) or make a one-time payment initial policy (single premium insurance). This depends on the type of insurance and the capital that you want to make.

Depreciation insurance are a type of life insurance where the insured capital coincides with the remaining unamortized amount and have the same duration as the mortgage or loan. The amount of the capital guaranteed at the time of death (or contingency cover) of the insured will be the same than the capital pending payment of the mortgage or loan immediately following the last expiration.

There is also another type of insurance in which the amount to be paid where there is death or invalidity (in your case), remains unchanged throughout the period of duration of the insurance contract. In these cases, the insurance company will pay to the credit institution the outstanding unamortized amount and excess, the rest of persons designated as beneficiaries in the policy.

IS IT COMPULSORY TO TAKE OUT INSURANCE OF REPAYMENT?

When engages a mortgage or a loan, are not required to take out insurance of repayment, although it is highly recommended. Similarly, the fact of hiring a mortgage or a loan with a particular bank does not imply that depreciation insurance have to be engaged with them also.

In the case of mortgage loans, the only insurance that is mandatory is the fire, and you can hire it with who you want.