General insurance Mortgage guarantee insurance

[Phabbyfundz]

Coverage for the mortgage usually a financial institution, in the event that the mortgage holder defaults on a loan also called private mortgage insurance.
Mortgage insurance is a form of decreasing term insurance that covers the life of the person taking out the mortgage. Death benefit provide for the payment of the outstanding balance of the loan. Coverage is in decreasing term insurance so that the amount of coverage decreases as the debt decreases.
A variant, mortgage unemployment insurance pays the mortgage of the policyholder who becomes involuntarily unemployed. Investment grade securities backed by a pool of mortgages. The issuer uses the cash flow from mortgages to pay interest on the bonds .
The importance and benefits of mortgage insurance policy in developing and developed countries cannot be overemphasized.

 

[btaliat]

I think any one that wants to go for mortgage loan need this kind of insurance policy. This is to ensure that even if he defaults in the re payment of the loan, he will be covered by the insurance companies who will pay on his behalf to the mortgage banks.

 

[Mandy96]

Mortgage normally is a bill that is being paid mostly on monthly basis and it is usually common in developed countries like USA, UK and so on, so having this type of insurance will really help a lot if you happen to live in places like that. Although one will still also have to pay the premium too

 

[btaliat]

Mortgage normally is a bill that is being paid mostly on monthly basis and it is usually common in developed countries like USA, UK and so on, so having this type of insurance will really help a lot if you happen to live in places like that. Although one will still also have to pay the premium too

I think it will be double payment on the part of the insured person. How can he be repaying the loan on the mortgage and still be paying premium at the same time. I think he should be that the insurance company will be responsible for the repayment of the loan since he will be paying premium