Melbourne, Australia (PRWEB) February 27, 2013
A home mortgage is a major financial commitment—and at times, it can be a major financial burden. As such, many homeowners are zealous for ensuring that home mortgage payments never become burdensome to their family members. One way to prevent home mortgage payments from overwhelming family members is to obtain a home mortgage life insurance policy. As its name suggests, home mortgage life insurance ensures that the mortgage is paid off in the event of the policyholder’s untimely passing, thereby preventing mortgage payments from causing financial duress to the surviving spouse or children. A recent Business Insider article weighs the various pros and cons of home mortgage life insurance—and it has won the attention of Thomas Reeh.
A financial services professional with more than 21 years of experience, Thomas Reeh currently leads a team of financial representatives in Australia, serving clients in Melbourne and Tasmania. Reeh is zealous about home mortgage protection. He has weighed in on the Business Insider article with his own statement to the press.
“Mortgage life insurance is for many borrowers a necessary evil,” says Thomas Reeh, in his press statement. “Nobody will ever think it will happen to them, but accidents, illness and misfortune are part of life. Having to worry about paying off a mortgage in a time of grief is the last thing anyone would ever want to face.”
In other words, Reeh continues, the need for mortgage life insurance is very real, yet many insurance companies fail to offer the kinds of home mortgage life products that consumers really need. “It is time, however, for the insurance industry to respond with some decent product terms,” continues Thomas Reeh. “Having level premiums despite a decreasing risk—in this case the debt—is just not suitable. Insurers should recognize that consumers are becoming more and more discerning when assessing exactly what it is they get for their money. The market is ripe for an insurer to step forward and offer a genuinely customer-centric mortgage life insurance product. But is there anyone brave enough to take on that challenge?”
The article from Business Insider, meanwhile, notes several pros and cons associated with the current mortgage life insurance offerings. The biggest advantage to obtaining this coverage, the article suggests, is the nearly unparalleled peace of mind that it provides.
The biggest drawback—as highlighted by Thomas Reeh—is that the premium payments tend to be uniform throughout the life of the policy, whereas the death benefit diminishes over time. Another downside is that mortgage life insurance is typically paid to the lender, as opposed to financial dependents of the deceased—limiting the efficacy of this coverage as opposed to more traditional life insurance.
Thomas Reeh is a financial services professional with more than 21 years of experience. He currently works in a managerial role, overseeing the practices of some 300 financial planners across the Melbourne and Tasmania areas. He is also a staunch supporter of The Future2 Foundation, a non-profit group established by members of Australia’s financial services profession. The Future2 Foundation seeks to make a difference in the lives of Australia’s underprivileged young people.