What insurance should I buy if I have a loan? – Financial & Insurance News

What insurance should I buy if I have a loan?

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Hurricane season is right here, however knowledge reveals few householders are ready |

The house is almost every family can not avoid things, to the age of marriage the first thing is to buy a house. Many friends are most concerned about the house, many people earn money the first thing is to buy a house. But in reality, whether it is living or investing in real estate, the full amount of money to buy a house is still very few people, most people will choose to buy a house loan.
According to the report of the survey group of urban residents’ household assets and liabilities of the survey and statistics department of the People’s Bank of China, the participation rate of our national household liabilities is high, the concentration of liabilities is obvious, the structure of household liabilities is relatively single, the source of liabilities is mainly bank loans, and housing loans are the main composition of household liabilities – among the resident households with liabilities 76.8% of the households have housing loans, and the average household housing loan balance is 389,000 yuan. And loans to buy a house is mainly young people, according to the central bank survey, the age of the head of the household is 26 to 35 years old, the highest rate of participation in debt, 73.1%.
For families with mortgage loans, what happens if the “pillar” of the family falls down, such as through illness or accidental death, or if he or she is no longer able to work?
So, what kind of insurance should you buy if you have a mortgage?
First, it is recommended to buy term life insurance.
Term life insurance means that if the insured dies (or is totally disabled, as agreed in the contract) during the contracted period, the insurance company should pay the insurance benefit; if the insured survives at the end of the insurance period, the contract is terminated – in short, no death, no compensation.
As an example.
Old Wang bought a house at the age of 30, carrying a mortgage of 2 million for a term of 30 years, and he also bought a term life insurance with an amount of 2 million and a period of 30 years, with his wife written as the beneficiary. In the next 30 years, in case the old king can not die, the insurance company compensated 2 million to his wife, can continue to pay the mortgage or a lump sum payment of the remaining loan; if the 60-year-old king is still alive and kicking, the insurance terminated.
Some people will say that the mortgage will get smaller and smaller as the monthly repayment, is there a corresponding insurance? There is indeed such a term life insurance, called decreasing term life insurance, that is, with the number of years, constantly decreasing the amount, the perfect hedge against the risk of the mortgage.
However, I still suggest that you consider the amount of insurance, but also need to consider the future child support, family expenses, elderly support, etc., to set a comprehensive amount of term life insurance.
Secondly, in addition to term life insurance, I suggest that you choose a comprehensive insurance plan, and choose a combination of accident insurance, critical illness insurance and medical insurance for the breadwinner of your family. Because the pressure of the monthly payment itself is not small, when choosing the payment method, it is recommended to choose the long-term annual premium payment method. In the event of a change, it will guarantee money for medical care and medication, as well as money for mortgage payments.
Overall, families with a mortgage should really consider purchasing insurance, preferably term life insurance to hedge against the risk of future mortgage payments, and secondarily critical illness insurance to prevent the risk of losing income in the future due to illness.