Death is something that nobody likes to think about, but its consequences can have far reaching effects for the individual and his or her family members and loved ones.
Life insurance can go a long way in making sure the untimely death of the insured individual does not result in his or her loved ones being burdened with their outstanding loans and other debts.
When it comes to home loans through the U.S. Department of Veterans Affairs, one of the perks in addition to no money down and low interest rates is no required primary mortgage insurance. However, if the veteran who received eligibility for the loan passes away before it is paid off, then the VA guaranty cannot pay off the remaining balance.
Instead, the surviving spouse or co-borrower becomes responsible for the remaining loan balance. If there is no co-borrower, then the loan becomes the responsibility of the veteran’s estate, with mortgage life insurance an option only if it is purchased from a private carrier.