If you have taken a house on mortgage loan, you need to know about Mortgage Protection Insurance or MPI. MPI is like a special life insurance that takes care of your mortgage payments in case the payer dies or becomes unable to work while he/she is making the mortgage payments. It is special because there are many terms and conditions attached to MPI depending upon the person’s job, work hazards, mortgage amount and what types of coverage are requested etc. The BPO services India analyses the mortgage payer first to understand the payment history, the details of the property and loan sanctioned and paid till date, the age of the payer etc along with the payer’s job, health and other aspects before approving the Insurance application. As the payer, here are some details you need to know about MPI:
Who can benefit from MPI?
As obvious, all those who have taken mortgage loan for property will benefit from MPI. You have to take it especially if your job involves life-risks or if your health is not at its best. In both these cases, a normal insurance may not work out for you as the insurance company may not agree to provide you the protection you seek. But mortgage insurance will take care of your home mortgage balance upon your death or inability to work due to a disease or accident. But there are a lot of conditions that need to be complied with for the insurance to be approved. The mortgaging firms outsource mortgage entry services as well as insurance applications processing to competent third-parties who carefully verify and validate the forms and documents.
The Mortgage insurance is priced based on all these elements mentioned above, particularly the amount of mortgage, risk involved, and the age of the insured. In case you pay the mortgage loan jointly with your spouse, you can avail joint coverage on the insurance. If your job involves risks or you already have a medical condition that makes health or life insurance difficult to get, it is better to avail a MPI to make sure your loved ones can benefit from mortgage-free home even if you are not there to pay it.
What more do you need to know about MPI?
It is also important to note that MPI on Mortgage And Foreclosure Service does come with certain terms and conditions, especially upon disablement or unemployment. While it is true that disablement leaves you unemployed for long, sometimes life-long, depending upon your MPI insurance terms, the mortgage payments may get delayed to start with. Sometimes, the payments are done by the insurance company on a temporary basis, say for a few months or maybe a couple of years at the most. In the case of unemployment also, the same rules follow. But in the case of death of the insured, the insurance company will make the complete payment directly to the mortgage lender. This is particularly worthy if the mortgage payment is totally dependent on the insured person’s income.
When mortgage loans involving high value and risk are taken by the purchaser, the mortgage services India outsourcing partner will always advise the purchaser to take MPI.