What is Mortgage Protection Insurance?
As a homeowner, you want to protect your home with affordable, comprehensive coverage.
As a homeowner, safeguarding your residence with cost-effective and thorough coverage is paramount. Mortgage protection insurance, a form of term life insurance, is tailored to settle your mortgage in the event of your passing. It operates similarly to a conventional term life policy: You acquire coverage for a specified duration, make regular payments, and if you were to pass away during the policy's validity, your designated beneficiary receives funds to clear your mortgage debt. This safeguard guarantees that your family can continue residing in their home, even if you're unable to contribute to mortgage payments anymore.
Why Do I Need Mortgage Protection Insurance?
As a homeowner, being able to pay your mortgage on time every month is important. What would happen to your loved ones if you were to die prematurely, become disabled or critically ill, and your income suddenly disappeared? None of us know what the future will bring, but you can achieve peace of mind today with mortgage protection insurance.
Advantages of Mortgage Protection Insurance
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Provides a death benefit to pay off your mortgage in the event of your death
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Pays your mortgage payments if you become disabled
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Protects your mortgage payments in the event of critical illness
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Provides benefits from a life insurance policy with generally affordable premiums
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Achieves peace of mind for your home and family
How Mortgage Protection Works
Mortgage protection 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.
Frequently Asked Questions
What is the difference between mortgage protection insurance and homeowners insurance?
Mortgage Protection Insurance: Makes your premiums in case of job loss* Money goes to your family Pays your mortgage if you become sick or injured Money your family receives is tax free Is portable – new home? It travels with you Homeowners Insurance Covers: Damage to your home in severe weather and water conditions Theft of your belongings Vandalism of your house and property Fire damage to your home Personal injury lawsuits if someone gets hurt on your property
When should I buy mortgage protection insurance?
If you have a mortgage on your home, or if you are in the process of obtaining a mortgage, you should consider buying mortgage protection insurance.
Do I qualify for mortgage protection insurance?
In most cases, yes! Mortgage protection insurance has a very high acceptance rate as most plans are offered with simplified underwriting (you won’t have to take a medical exam to qualify).
Can I afford mortgage protection insurance?
Mortgage protection is one of the most inexpensive types of insurance, and 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.
