Mortgage Insurance for Newlyweds ~ Mortgage Life Insurance, Couples Insurance and Mortgages
Mortgage Insurance For Newlyweds
Private mortgage insurance and mortgage life insurance are important to a couple’s insurance policies.
For newlyweds that are buying their first home, you may want to consider buying mortgage insurance. There are actually two types of mortgage insurance available. There is private mortgage insurance and mortgage life insurance.
If you are buying your first home and putting a down payment on it that is less than 20% of the home’s value, then you will have to have private mortgage insurance. It is a requirement of your lender. This type of insurance will protect the insurer if you default on your loan or the lender can’t get the full mortgage price when reselling the home. This type usually costs around about ½ of the loan amount.
The second type, which is mortgage life insurance, is an insurance policy that will repay the home’s mortgage if you die. It will protect your home and pay off your mortgage. This ensures that your spouse and children will not lose the home when pass away due to the loss of your income. With certain added policy riders, it will pay your monthly mortgage payments if you become ill, disabled, or involuntarily unemployed.
There are three riders that can be added to your mortgage life insurance policy. There is the mortgage disability rider comes with many life insurance policies that provide you a monthly income to pay your mortgage if you become disabled. A mortgage loss of employment rider comes can be added to your policy to help pay your mortgage if you become unemployed involuntarily. A mortgage critical illness rider can be added to your policy to help make your monthly mortgage payments if you become critically ill.
Always research insurance company, to find one that is reputable. You can go online to do this, or ask family members or friends advice on the company they use. Make sure to review the policy, and ensure it has all the riders added that you may need. Your first home is an investment, just like your marriage, and you want to protect and secure it for the future too.
1. Specifics on private mortgage insurance (PMI) from the Federal Reserve Bank
2. Information on Mortgage Insurance Business Regulations in Canada.
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