Protect your mortgage with Mortgage Insurance by Robert H

Your home purchase is probably going to be one of the biggest and most important investments that you will make. It is where you will live, provide for your family and friends and keep the world from invading your private space.

There are many types of Mortgage Insurance and you should investigate all of them prior to making a decision regarding your mortgage. Insurance companies sell several types of plans and it is important for home buyers to understand them. You may or may not feel that you need to get mortgage protection insurance but an ounce of protection may save you and your home in the event of a life changing event.

There are basically three types of Mortgage protection insurance.

1. PMI (Private Mortgage Insurance) - This type of insurance is generally required for individuals who are wanting to buy a home but are not putting down more than 20%. This type of insurance protects lenders in the event that a mortgage holder is unable to pay and then defaults on the loan. The cost of this insurance varies with the lender and is dependent on several things like loan type, loan term, value of the home and what kind of coverage you want to have.

2. Mortgage Life Insurance - Most people don't want to think about this, but having a good mortgage life insurance policy is necessary in the event of death. Everyone one should think about this since most families are experiencing the loss of a loved one and should not be worried about how they can still stay in their home. This type of insurance will pay off the mortgage. The insurance should be reviewed to make sure that it is the right type for you. Some of the different types could include terminal illness and critical illness coverage. Depending on the type of mortgage that you have could determine what type of Mortgage Life Insurance you will get.

3. Mortgage Disability Insurance - This is another type of insurance most people don't want to consider since they don't plan on ever becoming disabled. But you should consider the fact that if you or your spouse was to become disabled and unable to work, could you afford your home. If you don't need the two incomes to pay for your home, then you might not need this type of insurance, but most people need the two income family to be able to afford the mortgage payments and up keep on the home. This insurance can certainly protect you from undue financial stress if you become disabled. Depending on the type of plan, you might get coverage for a short term disability and then you might get a plan in the event of a life changing disability. Being without an income can certain put a kink in home buying plans.

Review your options and have open discussions regarding these plans. This type of protection should be strongly considered when purchasing a home.