ECONOMICS

Detailed explanation-1: -Mortgage insurance (also known as mortgage guarantee and home-loan insurance) is an insurance policy which compensates lenders or investors in mortgage-backed securities for losses due to the default of a mortgage loan. Mortgage insurance can be either public or private depending upon the insurer.

Detailed explanation-2: -FHA mortgage insurance protects lenders against losses. If a property owner defaults on their mortgage, we’ll pay a claim to the lender for the unpaid principal balance.

Detailed explanation-3: -Mortgage life insurance policy / mortgage title insurance/ Home Loan Protection Plan (HLPP) is a policy that covers the borrower against the non-payment of EMI in case of death of the borrower. There are some policies which have riders of accidental death, disability, critical illness, job loss (max 3 EMIs) etc.

Detailed explanation-4: -Personal loan insurance is a type of coverage that can provide financial protection against defaulting on a loan. This type of insurance pays the sum assured if you die or become disabled. Thus, your dependents can repay the personal loan from the death benefit.

Detailed explanation-5: -Mortgage Insurance Overview: Basically, mortgage Insurance guarantees repayment of a mortgage loan in the unfortunate event of the policy holder’s death or disability. Usually 12 months is the tenure of payment of such mortgage insurance (although in some cases it may be higher).