Do you really need Mortgage Protection Insurance?

Whether you own a home, a rental property, or other form of real estate, you probably have a mortgage. Taking out a mortgage or refinancing a mortgage can be a scary proposition. Now imagine if the principal breadwinner becomes critically ill, disabled or dies. Who will make the mortgage payments?

 

What is Mortgage Protection Insurance?

The idea behind mortgage protection term insurance is straightforward: You pay a premium, which remains the same for the duration of the policy. If you die during that time, the insurance company issues a check to your designated beneficiary in the amount of your predetermined death benefit.  Your beneficiary can choose to pay off the rest of your mortgage, pay off any other outstanding debts or use the money in anyway they see fit.

 

How is Mortgage Protection Insurance Priced?

Age, height, weight, past and present medical conditions, family medical condition history and lifestyle can all affect the determination of your premium. The choices you make regarding coverage, such as length of term and guaranteed premiums, will also affect the amount you will pay.

 

Which Mortgage Protection Plan is better? ...

One that requires a medical exam or one that requires no medical exam?

Honestly, it depends. Insurance is all about statistics. If the policy requires “no medical exam”, then it’s going to be more expensive in order to cover everyone. If you don’t smoke and are in average or above-average health, then you should simply apply for insurance that does require a medical exam. Now, if you're in poor health, then a non-medical policy might be an opportunity to get some insurance that otherwise might not be available to you.

 

 

Accelerated Death Benefit Rider: This rider is included, where approved, at no additional premium for eligible policies. It allows a prepayment of a portion of the death benefit if the insured is terminally ill (life expectancy of 12 months or less). The owner can request payment of up to 25 percent of the eligible death benefit not to exceed $250,000.

Children's Term Rider:  This rider provides level term life insurance on each insured child to age 25.

Return of Premium Rider:  This rider provides for a return of the total premiums paid by the client at the end of the initial term period.

Keep your Mortgage Term Insurance policy to the end of the term and get all the money you paid returned to you; or borrow from your Mortgage Term Insurance policy since many have a “virtual savings” feature where you can access cash.

One of the most unique features of our Mortgage Term Insurance policies is the return of premium rider that refunds every penny of premium when you live to the end of the policy term. This money comes directly back to you tax-free.

At this point you can roll your distribution into your retirement vehicle or use the money to pay off your mortgage. Whatever you choose, it’s up to you!

 

Disability Rider: This rider waives premiums if the insured is totally disabled for longer than six months.

 

Critical Illness Rider:  This rider allows for payment of an accelerated death benefit in the event of a covered illness.

 

 

Accident Only Disability Income Rider:  This rider provides benefits for disabilities resulting only from an accident. Disability is defined as the inability to perform the essential duties of any occupation for which the insured may qualify based on past training, education or experience. Also, the insured will be considered disabled as long as he or she suffers the loss of sight in both eyes, the total loss of use of both hands or both feet, or the total loss of use of one hand or one foot.

 

If you've purchased a home with less than 20 percent down, your lender probably required you to purchase "private mortgage insurance," or PMI.

While mortgage protection insurance will pay off your loan when you die, PMI is intended to cover a portion of your loan if you default and the benefit is paid to your lender, not your family. PMI is designed to reduce the risk faced by lenders. PMI might make it easier for you to get a mortgage, but you need another form of life insurance to guarantee your loan can be paid off should you die.

 

Protect Your Most Valuable Investment Today

Our dedicated representatives stay current with changes in the mortgage protection marketplace. We continually compare benefits within the mortgage protection industry, working with and securing only the most highly-rated mortgage protection carriers offering the best coverage at the best cost. We shop the market so you don't have to!

 

Getting a mortgage insurance quote takes just a few minutes. And we make it as simple as possible for you to get a quote by giving you options...