Tag: insurance

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Family Insurance

Family Insurance

If we have individual health insurance plan, the policy is issued in the name of the individual policyholder. So, if we need all our family members to get the coverage, then we have to get different health insurance policies issued in the name of our individual family member. The number of policies issued must be equal to the number of persons in our family. This ensures that everybody will have a dedicated sum assured under their respective health insurance policies.

On the other hand, the case of a family health plan is different. The insurance policy is issued to the entire family as a whole and the sum assured is be a single one for all, which however is unlike in the case of an individual health plan.

An individual health plan for each family member certainly costs more as compared to a family health plan. Despite the cost, there are certain drawbacks of family health plans due to which individual health plans are recommended over floater plans.

Individual health plans are offered to individuals, where age is one key point in the criteria for issuing a policy. The policy is issued to an individual while taking into consideration his/her age in view and the premium will be determined based on his/her age. In contrast, in case of a family floater plan, the age of the senior most family member is recorded and the policy is issued accordingly.

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Mortgage Insurance

mortgage insurance

Purchasing a home is important financial decision, and it is important to do everything to meet the terms of our mortgage. To deal with financial situations that may arise unexpectedly, it is worth to take out mortgage insurance. Below is all what you need to know about mortgage insurance.

What is Mortgage Insurance?

Like any insurance policy, mortgage insurance helps us plan for the future and provides us with options in case we can t make  regular loan payments. Mortgage insurance is available in two different formats geared toward very different purposes.

First type of insurance protects the lender by making payments on the mortgage if the borrower can t. When homeowners purchase this type uf policy, it typically costs a small percentage of the base home loan, and borrowers pay a monthly premium.

Homeowners also have the option to purchase mortgage life insurance. This type of policy insures our mortgage in case we pass away or develop a major disability.

When Mortgage Insurance Is Required

Depending on the type of policy we are considering and the terms of our loan, our lender may require mortgage insurance.

Is Mortgage Insurance a Good Idea?

How much is mortgage insurance? It costs so much that many experts believe these policies are a bad idea. Private Mortgage Insurance costs around one 1 percent of the loan.

Many people also caution against purchasing mortgage life insurance. Although we will certainly want to protect our family and our property in the event of a death or disability, a mortgage life insurance policy does not offer much flexibility. Instead, many experts advise homeowners to pursue standard life insurance policies for these purposes.

How to Get Rid of Mortgage Insurance

If we do purchase a mortgage life insurance policy but no longer want to keep it, we may simply be able to cancel it. Getting rid of Private Mortgage Insurance, however, takes time. Once we have built up 20 percent equity in our home, we have the option to call our lender and cancel Private Mortgage Insurance. If we do not take action, the policy will simply fall off the loan once you have reached 22 percent equity, and we will no longer be responsible for Private Mortgage Insurance payments.