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What is Mortgage Protection Insurance?
As a homeowner, you want to protect your home with affordable, comprehensive coverage.
According to Experian the average mortgage debt in the United States is now over $200,000. While homeownership is a fundamental component of the American dream, most aspiring and existing homeowners overlook one key question: What happens to outstanding mortgages upon death?
The unfortunate answer is that beneficiaries are left to either pay the mortgage or foreclose. These situations are especially challenging for families that depend on two incomes to make ends meet. That's where mortgage protection insurance can help.
Here's what proactive homeowners need to know.
Mortgage protection insurance is right for you if you want to:
Protect your most valuable asset
Ensure your loved ones never have to deal with the fear of losing their home
Provide financial security when the unthinkable happens
63% of families with children are dependent on two incomes
How does mortgage protection insurance work?
After a policyholder’s death, surviving family members are oftentimes under immense pressure to make their upcoming mortgage payments. To help ease the strain, mortgage protection insurance kicks in, making payments for up to a year or more depending on the policy’s terms. From there, families gain the time they need to make a carefully-planned decision, whether that’s renting, selling, or staying put. In some cases, the coverage may even include job loss, disability, or critical illness for policyholders who qualify.
The benefits of mortgage protection insurance
The largest investment for most Americans is their home. As a result, a sizable portion of a typical household's monthly income is allocated toward mortgage payments. Therein lies the key benefits of mortgage protection insurance.
Peace of mind after the unexpected death of a policyholder
Guaranteed premiums throughout the entire term
Flexible coverage with the option of cash back at the end of the term
Coverage that isn't tied to a single location
FAQ
1. 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
3. 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.
2. 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).
4. 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.
Get a Mortgage Protection Plan Today
When unexpected circumstances arise, mortgage protection insurance offers a security net that can help families avoid foreclosure, stay in their homes, and overcome financial strain. To ensure proper financial planning, policyholders and their loved ones should understand the policy’s benefits, coverage terms, and payout terms. Although mortgage protection insurance premiums are generally affordable, there are plans for every situation.
Final Expense
Final Expense insurance will cover you for life. Prices are locked and will never increase nor will your policy end. These types of policies are designed to make sure all funeral and other end of life expenses are covered.
Mortgage Protection
Mortgage protection insurance is a way to protect one of your most valuable assets in the event of a death. Most terms are designed to give you a full return of premium if you outlive the policy.
Indexed Universal Life
This is a type of permanent policy that allows the insured to accumulate cash value in addition to their death benefit. It can be setup to help supplement your retirement plan.
Fixed Indexed Annuities
This is a safe way to participate in the market's gains while avoiding potential loses and keeping your retirement secure.
