Upon receipt of a mortgage loan the borrower must for several years to repay certain sums of money. But life sometimes presents some nasty surprises. And for such a long time can all happen. It is reasonable to execute the contract of life insurance and disability of the borrower.
Until recently, this item was necessary for obtaining a mortgage loan: banks simply refused to loan to customers who did not agree on a mandatory basis to issue such insurance. Now it is at the discretion of the borrower. And what are the advantages of such an insurance policy?
The main essence of this insurance is that in the event of death or disability of the borrower's mortgage payments for him to be an insurance company. You can add more insurance and the risk of temporary disability. In this case, if the borrower, such as sick pay that loan payments during the period of the disease will also be an insurance company.
The cost of the policy in each case is determined individually, depending on age, health status and the nature of the borrower. As a rule, the rate of insurance is in the range 0.5 - 1% per annum of the amount of credit outstanding with interest. Validity of insurance is set equal to the term loan, and payments are made on it once a year. Accordingly, each year the premium is reduced.
Thus, insuring his life and work capacity for a period of a mortgage loan, the borrower can be assured that in case of emergency contingencies on the loan will not have to pay for his family. After all, the responsibility will take on the insurance company.
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