What is a Mortgage Protection Plan?
One of the main life insurance products that we offer is Mortgage Protection Insurance. Mortgage Protection Insurance is a product that homeowners can use to completely cover their biggest and most important asset: their home. With Mortgage Protection Insurance, you won’t have to worry about being denied due to preexisting medical conditions, as this coverage requires no medical exam.
Whether it’s a death benefit to cover the full amount of your home loan amount or monthly disability coverage for your mortgage payment, you will have peace of mind knowing that your family will not have to take on the extra burden of covering a house payment. Contact us today, and one of our local mortgage protection advisers will work with you to create a customized mortgage protection plan with rates that fit your needs and most importantly, your budget.
Popular options available to include with your mortgage protection insurance plan:
- Return of Premium (receive all your premiums back)
- Disability Coverage to pay your mortgage payment
- Critical Illness, Chronic Illness, Terminal Illness
Do I Need Mortgage Protection Insurance?
Your home is probably your biggest asset and largest investment you will make. If your family’s income decreases drastically due to your death and you only have ordinary life insurance, they could be left with very little of the life insurance pay-out after paying off the mortgage. Mortgage protection insurance is specifically there to cover the mortgage so that the life insurance pay-out can help your family get back on their feet.
Your Mortgage Protection Insurance can be used in a variety of ways. It can be paid out in one lump sum to pay off your home mortgage entirely, or you can choose to have the plan paid out in monthly installments, as mortgage payment protection insurance, should you become unable to work. You can also add your children to the plan so they can convert the insurance to their own coverage when they leave the nest.
Mortgage Protection Insurance is a risk free investment. Your premiums will be returned if you do not use the coverage, and we guarantee your premiums, so they will not increase as you age. Contact one of our advisers today so you and your family can relax knowing that, in the event of the unexpected, your home is covered.
Do I Already Have Mortgage Protection on My Loan?
Most of the time, what you have is PMI (private mortgage insurance) already added in when you take out your loan. Homeowners are required to have this insurance if the balance of their loan is more than 80% of the original property value.
However, this mortgage insurance does not protect you, but protects your lender if you quit making your mortgage payments. Many homeowners believe they have protection because of this insurance and leave themselves open to tragic circumstances should something happen to their family or loved ones.
Why Should I Get Mortgage Protection Insurance Instead of Using the Life Insurance I Already Have?
Life insurance is meant to provide for living expenses for a long period of time should a provider pass away. Without Mortgage Protection Insurance, you would have to pay off your biggest debt using a large sum of your life insurance, drastically reducing the amount for your future living expenses.