NLIC.org

Jerome Said:

What affects mortgage insurance if you lose your job ?

We Answered:

no the insurance company will not cover you for this, the reason is that the initial probationary period is like a short term contract after which you are "upgraded" to the permenant contract so therefore you are not being made redundant you are just coming to the end of your contract,

Becky Said:

is there an insurance for homeowners in case of death, can a mortgage be paid for?

We Answered:

This type of policy is usually called Mortgage Protection Term but in reality is just a decreasing term life insurance issued for the length of the loan. Basically if you start out with a $300,000 30 year mortgage -- the policy would be issued to cover the initial loan amount for $300,000 for 30 years but the policy would decrease in value down to $0 in the last year of the term. The disadvantage of this policy is that the rate on this policy is very high in comparison to another type of policy that you can purchase and still use to accomplish the same objective. Essentially most people purchase this policy because they are on a tight budget and want to leave enough money to their heirs to at least pay off the mortgage. The product that would better suit for that objective would be a level term policy for a specific term that is long enough to cover the mortgage, i.e. you can purchase a level term for a term of 10, 20 or 30 years. The cost for this is much lower per thousand in insurance cost than the decreasing term, the rate is fixed and you will end up providing your heirs with enough money to pay off all your final debts.

I suggest that you find a local independent agent that is licensed to sell life insurance who can provide you a full financial needs analysis so that he or she can assess your need and provide you with the best product at the best rate to fulfill that need.

I hope this information helps. Good Luck

Olga Said:

What is difference between Mortgage Insurance and Homeowners Insurance?

We Answered:

Mortgage life insurance is limited life insurance that pays off the loan balance if you die.

Private mortgage insurance (PMI) or FHA mortgage insurance protects the lender if the borrower defaults on the loan.

Homeowner insurance consists of liability and property protection.

Totally different things. Which kind are you talking about?

Cody Said:

What exactly is mortgage insurance? Should I get it?

We Answered:

Lenders mortgage insurance (LMI), also known as Private mortgage insurance (PMI) in the US, is insurance payable to a lender or trustee for a pool of securities that may be required when taking out a mortgage loan. It is insurance to offset losses in the case where a mortgagor is not able to repay the loan and the lender is not able to recover its costs after foreclosure and sale of the mortgaged property.[1]

Eddie Said:

What exactly is Mortgage Insurance?

We Answered:

There are several different types of insurance when it comes to your home. First, fire insurance. Most lenders require you to carry fire insurance that covers them in case of fire. Homeowner's insurance generally covers the house and its contents and covers against other types of problems (a major leak is one example). It generally does not cover the house in case of earthquake, flood or fire. Many people also have mortgage insurance, which is generally purchased if you put less than 20% down on your home, as a lender requirement. This insurance may cover the lender in case of default on the loan. Most likely, any mortgage insurance would NOT cover the $5,000 still owed on the home. However, I am a broker in California, and local laws may vary by state.