Why You Might Need Bond Insurance?
Financial experts and banks may give you too many reasons to buy bond insurance and to be fair, some are legit while some are mere exaggerations. Every salesman on the planet will try to induce a sense of fear while selling anything but it doesn’t change the fact that there may be some sense into what is being sold.
Bond insurance is not always mandatory for any homeowner but it is wise and also rational to have one. Bond insurance is typically an insurance that covers the value of your home or the value of your bond, in other words the mortgage. Almost everyone is likely to buy a house on mortgage or a home loan and it is essential to ensure that your house is secured from every untoward circumstance.
Without delving much into the financial intricacies or the sales pitches of the insurance agents, here are just two reasons why bond insurance can be very useful for you and your family.
- You would never know what troubles await you and your house. There could be a catastrophic storm destroying a part of your property, an accidental error by someone in your family leading to fire or other types of damage and then there are the normal expenses. Now, if something as untoward as property damage or complete ruining of your house occurs, there is very little you can do. You would have to keep paying off the mortgage and spend to rebuild your house. Bond insurance can take care of either or both, depending on what type of plan you choose to be with. This is a huge cover that acts as the last line of financial defense.
- Paying off the mortgage is the biggest liability in an adult’s life. In an unfortunate incident of demise of the primary earning member of the family, paying off the mortgage could become an impossible task. Having bond insurance keeps the family secured in such situations.