Mortgage Protection Insurance

Mortgage Protection Insurance Provided By Our Agency

For most homeowners, the mortgage is the single largest source of personal debt. Mortgage protection insurance is a specialized life insurance policy designed to pay off that debt in the event of your death.

What is Mortgage Protection Insurance?

Mortgage insurance is an insurance policy that protects a mortgage lender or titleholder if the borrower defaults on payments, passes away, or is otherwise unable to meet the contractual obligations of the mortgage. Mortgage insurance can refer to private mortgage insurance (PMI), qualified mortgage insurance premium (MIP) insurance, or mortgage title insurance. What these have in common is an obligation to make the lender or property holder whole in the event of specific cases of loss.

What are the benefits of Mortgage Protection Insurance ?

Guaranteed acceptance

One of the advantages of buying mortgage protection insurance is convenience.

Anyone can buy a policy; typically, no medical exam is required in the underwriting process. This is especially helpful for someone with a pre-existing condition or an illness that either disqualifies them from other types of life insurance or pushes their life insurance rates up to an unaffordable level.

Since life insurance rates are primarily determined by the applicant’s health, skipping underwriting could result in higher insurance premiums. Still, it can be worthwhile if poor health would raise the premiums of a standard term life insurance policy even more.

Provides certainty

Another benefit of MPI is that it takes the guesswork out of paying off a mortgage.

Receiving a lump sum of money from a traditional term policy can be overwhelming. MPI is matched up to the mortgage balance, and the money will go only toward that. Your family will never have to worry about having a place to live.

Good supplement to life insurance coverage

Mortgage protection insurance can also be an excellent supplement to life insurance coverage.

If your mortgage is paid off with money from a mortgage life policy, then your family could use all the benefits from your term or whole life insurance policy for bills and other expenses.

Why do you need Mortgage Protection Insurance ?

Imagine the worst case scenario. A fatal accident today would force your loved ones to immediately experience financial hardship. On top of your final expenses, the mortgage is due, but your family has no way to pay it without your income. They haven’t even had enough time to grieve and now they have to deal with the impending tragedy of foreclosure.

Like most life insurance, mortgage protection insurance eases the financial burden of your loved ones. It is an affordable way of ensuring that your home is paid for no matter the circumstances. Cancer, stroke, heart attack, injury, death… your family will never be in jeopardy of losing its home as long as you put a custom mortgage protection insurance plan in place.

Already have Mortgage Protection Insurance? Switching is easy

It might be time to switch insurers whenever the service that your existing insurer provides doesn’t meet your needs. For example, if you have a poor claims experience or an unexplained rate increase, it might be time to consider other options

If you cancel a previous policy before a new policy is effective, you could run into some serious financial problems.