Mortgage Protection Insurance Protects Your Family
No one likes to think about death, so they tend to put getting life insurance off until tomorrow and unintentionally leave their families unprotected. Ask yourself: What if something were to happen to me today? What would happen to our home? Will my family be able to continue paying the mortgage without my income? If not - Mortgage Protection Insurance (MPI) can provide the protection your family needs in case of death, disability or you lose your job. This coverage could be the best financial move you make for your family. If you have a mortgage it’s worth looking into mortgage protection insurance.
What is mortgage protection insurance?
Mortgage protection insurance is simply life insurance that pays your mortgage if a certain event, such as death, disability or job loss occurs. The cost of this policy depends on the amount of your mortgage, your age, and health. For disability MPI, costs may also vary depending on your occupation. It is different than personal mortgage insurance or homeowners insurance. Those policies protect and pay the mortgage holder and not your loved ones.
If you purchase mortgage protection insurance, the payments are made directly to your beneficiary in payments or a lump sum. That way the insurance follows you if you move. Also you can choose to cover the entire amount or just a portion of the payoff amount to give the beneficiary time to sell the property if they decide they do not want to stay in the house after your passing. This frees your family from worrying about how to make the mortgage payments.
Your policy may pay in case you become disabled or lose your job, but only for a certain period, typically a year or two, and there may be an initial waiting period. Disability or job-loss policies pay the principal and interest on your mortgage. You may be able to get a rider to cover other mortgage-related expenses such as homeowners's association fees.
Who Should Choose Mortgage Protection?
If you are wondering if you should choose mortgage protection, then you need to ask yourself a few questions
- Who are you leaving your debt to?
- Can they, or your family afford paying the mortgage without your income?
- Do you currently have enough life insurance to cover the mortgage in the event of your death?
- How many years are left before the mortgage is paid off?
- Can you continue paying your mortgage if you are out of work for an extended period?
- Can you afford the monthly mortgage protection premiums?
If you are concerned about your family's ability to continue making mortgage payments if you die or are injured, then you should seriously consider a mortgage protection option. When it comes time to buy mortgage protection insurance, we'll be there to tell you about the features and price of each policy.
Contact us today to protect your family home with Mortgage Protection Insurance.