Mortgage life insurance is a valuable way to protect your family and provide for them in the unfortunate case you should pass away suddenly and unexpectedly. This type of life insurance is slightly different than traditional life insurance for the single reason being that in the event of your death, your family would not be directly paid any money from this policy. Instead, if you were to pass away, the mortgage life insurance company would send a direct payment to your bank that satisfies any additional money owed on your property. This naturally leads to a good number of questions that must be answered before full understanding of this type of coverage can be gained.
How Does Mortgage Life Insurance Work?
This type of policy works by having your insurance company directly pay off the balance of your mortgage in the event of you passing away. Unlike traditional life insurance , your family is not awarded any direct funds, however, once the mortgage on any property is paid off by the insurance company the beneficiary of that property will inherent it with full ownership; just for the purposes of clarification, once the mortgage insurance company pays off the mortgage on any given property, they do not own that property at all, instead, full ownership is given to the individual who that property was left to in the will or through other arrangements. This is a substantial type of policy as it essentially ensures whoever your property is passed along to will assume ownership of that property without having to make payments on any sort of mortgage or loan.
The Best Mortgage Life Insurance Policy
The best policy of this type is one that comes from a legitimate company that can be found by browsing through your favorite Internet search engine or even your phone book. Typically you are eligible to apply for this type of policy at any time during your time as a home owner but it may be offered to you in some way, shape or form at your closing. One of the most helpful tips to remember is that if at any point you should refinance, take another mortgage out or switch your mortgage to another lender, you must reapply for an entirely new mortgage insurance policy as they are only able to insure existing mortgage policies. To further go into detail, this type of mortgage insurance applies to individual mortgages only and must be reapplied for if you change your mortgage at any given time. Getting mortgage life insurance quotes is the gateway for getting started on this coverage and is a fairly easy process; if you are an existing home owner or strongly considering purchasing a new home, this is one type of long term financial planning you do not want to avoid dealing with or taking into consideration as it can by defining way to provide for your family should tragedy strike.
Van Insurance Groups work in the same way as Car and Motorcycle Insurance Groups – and it is these that the Insurance Industry use to calculate the classification of your commercial or non-commercial vehicle.
With Insurance costs increasing by over 22 percent in 2010/2011 – it is no surprise to learn that many if not most vehicle manufacturers are trying to find ways to lower the Van Insurance Group classifications to get their vehicle more competitive in this difficult financial market.
With Vans and Commercial Vehicles alike, the Insurance Categories issued to the manufacturers is set by the ABI (Association of British Insurers) and Thatcham – the security accreditation specialists. All Van Insurance Groups are between 1 – 20. The lower the number, the less concerning it is for the insurance companies to insure the vehicle at a lower rate.
Unlike cars and motorcycles, the humble van has a guide only insurance rating due to the amount of uses which commercial vehicles can be used for. Even though this is unique to the commercial vehicle industry, it also passes on to cars and motorcycles where the usage is classified “for commercial use.”
Another prevailing part of calculation is based on the security of the vehicle, and the classification which is set by Thatcham. Should your vehicle have a factory fitted alarm and immobiliser your Van Insurance Group will be lower than a vehicle without. Most if not all new commercial vehicles now have factory fitted immobilisers fitted as standard.
The last factor which could make your insurance costs increase is the town or county of where the vehicle is parked or used on a daily basis. This is the largest factor when Insurance Companies calculate the premium of your Van Insurance, followed closely by the value of the vehicle and the commercial usage. Each year the insurance industry will create the analytical data supplied by the insurance companies to re-evaluate the groups of all commercial vehicles based on claims made by companies and individuals.
Summary: Always check the Van Insurance Group before you purchase a new or pre-owned vehicle – and when looking to renew your insurance, always remember to re-calculate the value of the vehicle. This is something that the insurance company will not do on your behalf, and can add between 2.5 and 5 percent to your renewal premium. When a vehicle becomes a total loss through accident or otherwise, the insurance company will only ever pay the market value, not what you have insured the vehicle for.
Never forget to read the terms and conditions within your Van Insurance summary when you take out a policy. You have a “cooling off” period should you find something which was not explained to you correctly at the point of initiation.