2023-11-13 11:17:16
Human beings have always been characterized by their constant concern for the well-being of their loved ones. And this, as forward-thinking individuals, is true even when life abruptly takes us from its side. A clear example of this is life insurance. A type of products that cover disability, death or any other risk that may affect the health of its insured. This time, we go one step further by focusing on life insurance linked to a mortgage. Providing, along the way, some advice and benefits of hiring it.
What is mortgage life insurance?
Mortgage life insurance It is nothing more than an optional policy in which its owner guarantees, in whole or in part, the payment of a mortgage loan, or any other type of credit, in the event of disability or death. And this is possible thanks to the linking of said product to our loan and the capital insured for this purpose. Something that, as you can imagine, is a relief for the family members. Not in vain, it prevents them from having to assume the entire debt by accepting said inheritance in the event of death. The mortgage capital pending amortization is covered.
What does the last thing mean? Simple. We are not talking about a must-have product. However, it is advisable to consider hiring it. And it is the best way to protect an investment and the future inconveniences that an accident or illness could bring, directly or indirectly, to our loved ones.
Benefits of life insurance on mortgages
Taking out any type of policy always involves an extra financial effort. However, there can be few things more valuable than protecting our home and family. As if that were not enough, and beyond the human and personal value, taking out life insurance on your mortgage has multiple benefits. We list some of the most notable ones:
– Our heirs will receive the insured capital in the event of death. Something that, as we have already mentioned, provides extra peace of mind.
– In the event of an accident, incapacity for work or terminal illness, the policy can also, if stipulated, cover the insured amount.
– Flexibility. We are faced with a credit product that is as easy to contract as it is flexible. Being able to adapt the scope of protection to our economic possibilities.
– Simple hiring. Online insurance without long waits or countless medical reports or administrative obstacles.
– Economic stability. This is, in short, the main advantage of life insurance associated with a mortgage. Not in vain, if the aforementioned events occur, it guarantees that our family members are free from any type of payment related to the mortgage loan.
Lastly, but not least, it is worth emphasizing that, according to Law 5/2019, of March 15, regulating real estate credit contracts, it is completely prohibited to link life insurance to mortgage loans on a mandatory basis. Therefore, our adherence, or not, to this type of products is neither mandatory nor limited to our bank’s offer. Normally much higher than those offered by insurance companies.
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