For average income earners, buying a house is not as easy as going to the mall and paying cash for whichever model you fancy. Thankfully, there are also companies lets people buy properties without having immediate funds to pay for it. Of course, the house is the security for repayment of loans. This is what is commonly called mortgages.
I remember back home in the Philippines, mortgages are the most common way to buy a property. Just walk in the malls and you'd see countless real estate companies showcasing their properties for sale and most of these give you the option of buying it on installment basis. Most of these mortgages are financed by banks and other institutions like Pag-Ibig. The house would then be the guarantee that you would pay back the loan. If you fail to repay the loan, the lender may foreclose the property and put it on auction to recover the amount of loan.
These times are very tough though and with the current economic crisis, some people might be on the verge of losing their jobs or some might not be earning as much as before so there is the danger of not being able to fullfill the financial obligation. This is where insurance for mortgages would come in as very practical. In the simplest terms, this is an insurance that a lender obtains against non-repayment of mortgages. For borrowers, mortgage life insurance would be invaluable since this is the type of life insurance where any payout is enough to payoff an outstanding mortgage.
Getting insured is a really wise way of securing yourself and your loved ones financially. Be thorough though with your research and get an insurer that would deliver when the need arises.
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