The risks linked to the subscription of a mortgage loan are unlikely but, if they do occur, they are really harmful. To cushion this blow there are insurances linked to mortgages, which come into play when the life of the insured is truncated by a death, illness, disability, unemployment or other circumstances. At that time, the initial tragedy can add another: the loss of an estate due to inability to repay the loan. The insurance takes care of it.

Mortgage-linked insurances are there to protect the insured’s estate when their life goes awry. If what is in danger is the income of the person who contracted the loan, the payment protection benefits  assume the payment of the mortgage loan for a period of time due to the interruption of that income (for example, due to a work stoppage). . In the case of risks linked to human life, life insurance assumes the payment, often total, of the outstanding loan installments in the event that the person responsible for paying the mortgage dies, has a long illness or accrues invalid .

The payment protection assumes the payment of the mortgage installments during a certain time if, for example, you remain unemployed.

In this way, the patrimony of the person and often also of the family unit is protected, which is not overwhelmed by the need to face the needs of the loan. In fact, the own possession of the house is being protected, avoiding with the payment that they lose the house.

Insurance statistics linked to mortgages

The data suggest that in Spain no less than 10,000 people are seen, each year, subjected to this situation of extreme stress and economic difficulty .

The history of insurance linked to mortgage loans is told, in a good way, by these people: those who, being still young ( the average age of people affected by mishaps is 50 years ), encounter events, sometimes of the maximum gravity, which make your life project is in danger.

On average, life insurance linked to mortgages face, at the death of the insured, the payment of about 30,000 euros . This is the amount of debt that the family is no longer forced to pay, with the addition that, in addition, through this release is common to acquire full ownership of your home, thus ensuring a reasonable economic stability.

The mortgage-linked insurance, therefore, although it acts in a silent and little known way because, by definition, the mishaps it serves are relatively few, it renders an enormous service to those who are needed to use it. There are, obviously, pains that in life, and especially in death, can not be avoided. The linked insurance can not avoid the pain, but yes, at least, it can avoid ruin.



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