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When To Check Your Mortgage Life Insurance?

Anil Kumar Anil Kumar , 12/6/2018
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Most people need a mortgage loan to buy their homes. At the time of requesting it, they are satisfied with checking if they can face the monthly payment that the bank asks for and with regretting the many years that they have left to pay. However, they could pay less by just checking the mortgage protection insurance by different providers.

The insurance companies are there for that, to return the money to the bank if the person who has requested a loan dies or suffers a disability that makes it impossible to meet the debt. The banks, logically, impose that whoever asks for money has life insurance; It is usually a necessary condition before lending the money that allows the purchase of the house. It is logical and it would be irresponsible not to have that insurance because, in case of death or disability, the helplessness would be terrible. It is essential that an insurance company takes charge of the debt and that the heirs or the interested party in case of disability are not forced to stay in the street for not being able to meet their financial obligations.

Check The Mortgage Life Insurance

When should you check the mortgage life insurance? Anytime. As simple as that. In we have cases every month that involve very considerable savings; some of up to $ 5000 per year difference for transferring the bank's mortgage insurance to an insurance company. It is a not inconsiderable amount, but even less, there is no reason to pay too much if we can count on a cheap mortgage insurance, for less money, that covers what we need.

Mortgage life insurance can be canceled before 30 days, once we have been granted the mortgage, although at that time we should have an alternative, because we should not be without a moment without insurance: you never know what it can happen and we should not play our future or that of those we love most, our children, and our partner.

Steps To Take Mortgage Insurance Out Of The Bank

The majority of banks have their conditions: domicile the payroll, have debit and credit cards with them (and use them), maintain a certain minimum balance but cannot ask to necessarily buy an insurance. If the client presents a new alternative policy, the bank must consider it.

If There Is Still No Insurance

When there is still no life insurance contracted mortgage, the simplest thing is to enter our insurance comparator and see prices and, very importantly, also the benefits offered by each company. This way we will know which is the most advantageous insurance for our case and we will check that we can get more affordable mortgage insurance quotes. It is important that these mortgage life insurances show that the bank will be the beneficiary only for the amount that remains to be paid from the mortgage at the time of collecting the insurance.

If Insurance Already Exists

  • ·         If we already have a life insurance contract with the bank, we will have to read the conditions of the mortgage, and if it is known that the differential can rise when there are no linked products, we recommend entering our penalty calculator and see if everything turns out to be cheaper to change company, which is practically safe.
  • ·         Talk to your bank and tell them you do not want to renew their mortgage life insurance with them.
  • ·         Ask them to provide you with the letter model to cancel the insurance, or easier: fill in the model that we propose here.
  • ·         Send the letter by certified mail to the insurance company with which you have insurance.
  • ·         If it seems complicated, call us and we will take care of everything: to manage your withdrawal from the previous company and that at the moment you have another cheaper policy with the coverage you really need. If you want to save money, you are advised to check the mortgage life insurance every year.