Mortgage Protection Life Insurance is coverage that will pay all or part of your monthly mortgage payment if you become disabled or pass away, which may give you the peace of mind that your family or loved ones might not have to take on the added financial burden of a monthly mortgage payment should your financial situation change due to your injury or death.
This coverage can be complicated, especially when it is offered the moment you sign your lending paperwork for a new home loan. Let Advisen Life & Wealth evaluate your current policy to ensure that you are getting the best rate and right policy for your particular situation.
WHY DO I NEED MORTGAGE INSURANCE?
For most of us, our homes are our biggest investment as well as our largest expense every month.
If your loved ones depend on your income to make your monthly mortgage payment, a sudden loss of that income could have catastrophic results. Dealing with the death or disability of a loved one is already emotionally challenging; adding financial stress can create an unbearable situation. If your family couldn't continue making payments or pay off the mortgage from other sources after your death, they may not be able to stay in your home.
Mortgage protection provides peace of mind, knowing that your family wouldn’t lose their home even if the unthinkable was to occur.
HOW DOES MORTGAGE PROTECTION INSURANCE WORK?
While the specific benefits and features of mortgage protection will depend largely on the plan and insurance company offering it, this type of insurance functions much like other life insurance policies.
You pay premiums to the insurance company to purchase a specific amount of mortgage protection coverage. Those premiums are based on your attained age and your health, as well as the value of your home and the payoff amount. If you die while the policy is in force, the insurance company provides funds to pay off your mortgage.
Some policies also offer additional coverage designed to provide a benefit in the event you are critically ill or become disabled. Certain policies also offer a unique return-of-premium feature that provides a refund of all of the premiums you paid into the policy at the end of the policy term. So, you can have the life insurance coverage you need and get a refund if you don’t need to use it!
Easy Acceptance
This policy covers almost everyone. Mortgage Protection Life Insurance is a great option for those who have a problem getting disability insurance due to a pre-existing condition or age. There are even policies with ‘Living Benefits’ that become available in the event of a medical emergency, like heart attack, stroke, or even just a change in your ability to perform normal daily activities. Living Benefits can help pay for medical costs, like hospital visits, nursing homes, rehab facilities, and more – and the best part; if you never need to access your policy, at the end of the term, you receive 100% of your principal back.
Benefits Can Include:
- Protects your most important assets
- Easy acceptance and portability
- Financial protection for your loved ones
- Tax-free payout that can pay off your entire mortgage
- Some mortgage protection policies may include a return-of-premium feature if the policy is not used, meaning you get your money back at the end of the policy term.
- Coverage can be designed to pay off your mortgage if you become critically ill or disabled.
- Helps pay for medical, nursing, or terminal illness
- Can allow your loved ones to remain in home after your death without worrying about how to make remaining mortgage payments.
Frequently Asked Questions
Q: What are the Advantages of Mortgage Protection Insurance?
The primary reason for purchasing mortgage protection, and the primary benefit, is to provide available cash to pay off your mortgage in full in the event you die with an outstanding mortgage balance, or become disabled or ill and are unable to continue working and making your mortgage payments. This can help ensure your family can stay in your home.
Mortgage protection is also easy to purchase, because there is generally no physical exam required. Best of all, premiums are competitive and affordable. Even if you have separate individual life insurance coverage, or are covered under your employer’s policy, purchasing mortgage insurance often makes sense because it provides death benefits designed specifically to pay off your home mortgage.
Q: Do I Qualify for Mortgage Protection Insurance?
Most mortgage protection insurance plans are offered with simplified underwriting, meaning that you don’t have to satisfy medical examinations in order to purchase this important coverage.
Insurance carriers offering mortgage protection coverage have very high acceptance rates. So, even if you have pre-existing conditions that might make it hard to purchase other types of life or disability insurance coverage, you may still qualify for mortgage protection insurance.
Q: Can I Afford Mortgage Protection Insurance?
Yes! Mortgage protection is affordable. Because there are a number of companies offering this type of coverage, pricing is competitive.
And, because the insurance protection is designed for a fixed time period (term) and the coverage amount declines over time as your outstanding mortgage balance goes down, it’s often a more affordable option than purchasing a separate whole life policy to pay off your mortgage in the event of your death.
Q: When Should I Buy Mortgage Protection Insurance?
None of us knows when we might become critically ill, become disabled or die unexpectedly, so there’s no sense in waiting to purchase mortgage protection insurance.
If you have a mortgage on your home, or if you are in the process of obtaining a mortgage, talk to an insurance professional to learn more about how affordable mortgage protection can be.
Advise. Insure. Prosper
Our professional team at Advisen Life & Wealth have a very strong commitment to providing specialized, personalized, and quality insurance plans to all our clients at extremely competitive pricing, and in an accurate and efficient manner.
At Advisen Life & Wealth, we’re dedicated to diligently work together to know our customers and understand their unique scenarios fully in order to provide thorough, and the most efficient insurance solutions for themselves and their families.