When you purchase a home, consider how you will protect your investment.
Most mortgage lenders insist on fire insurance coverage at least equal
to the loan amount or the building value, whichever is less.
You should also consider a homeowner's policy that combines fire insurance on
the building and its contents with personal liability coverage. Consult
your general insurance agent or broker for professional advice on
Mortgage Life Insurance
Mortgage life insurance (MLI) is
inexpensive coverage on your life which protects your family or
beneficiaries by paying off your outstanding mortgage in the event of your
death. For just pennies a day, you will have peace of mind knowing your
beneficiaries will be mortgage free. MLI premiums are based on two
factors: your age and mortgage amount. Your premium is added to your
mortgage payment so there's no extra paperwork, and it remains the same
until your mortgage is paid off. Joint coverage for spouses is also
Disability Insurance is important if your mortgage payments depend
entirely or in part on your income. Disability insurance provides
replacement income if an accident or illness prevents you from working.
Job Loss Mortgage Insurance
Recently insurance companies have started to offer Job Loss Mortgage
Insurance. This insurance covers the mortgage payments in the event that
you involuntarily lose your job.