Mortgage Protection Insurance
Mortgage protection insurance is term life insurance that can help your loved ones to pay off your mortgage balance in the event of your Chronic, Critical, Terminal illness or a Death. With this type of coverage, you can choose your spouse or another beneficiary to receive the policy’s benefit, which will, leave your loved ones without the need to continue making payments on the loan.
For many people, this can relieve a tremendous financial obligation if a primary income earner passes away and it can allow survivors to go on without having to drastically uproot their lives at an already difficult time for them.
For many people, the death of a primary income earner means having to move away from a home they love because they can no longer afford the payments – but not if you have a mortgage life insurance policy.
How much does it cost per month?
Just like with any type of life insurance policy, there are a number of different criteria that can factor into the cost of mortgage protection insurance.
The cost will be determined by your:
- death benefit
- your health history
- smoking status
- the length of coverage
Because most mortgage insurance policies are term life insurance, the longer your policy’s length (i.e., 30 years versus 20 years), the higher the premium is likely to be. The cost will certainly vary form individual to individual based on the critiera’s listed above.
Customize a Policy:
In addition, today, people are more able to “customize” their life insurance policies to better fit their individual needs. You can do this type adding different riders to the policy. While these, too, can add to the cost of your premium, they can often be extremely beneficial for you and your loved ones if certain events occur.
Some examples include:
- Disability Income Rider – This rider will allow for payments to be made if you should become disabled and unable to earn an income for a certain period
- Return of Premium (ROP) Rider – This rider will provide a refund of the premiums that were paid into the life insurance policy, should you survive the entire “term,” or duration of the policy.
- Critical illness – This rider will allow you to advance up to 95% of your death benefit.
- Chronic illness This rider will allow you to advance up to 95% of your death benefit.
- Terminal illness – This rider will allow you to advance up to 95% of your death benefit.
- Unemployment – This rider will waive your premium for a certain length of time.
Another key factor in the price of your mortgage protection insurance will be the insurance company that you purchase it from. There are a lot of mortgage life insurance companies out there in the marketplace – and similar to purchasing most any other product or service, these insurance carriers all price their offerings in a slightly different manner.
But a quote is just one small factor and is really just a starting point when seeking this type of coverage. You also want to be sure that you have the very best protection for your specific needs. That is why working with an independent agent who can help you in determining which carrier you will qualify for – as well as the best price – is what is key. An independent agent can also help you in comparing several different policies side-by-side and determining from there which plan will be the best one for you.
This is because the cost can differ – sometimes by quite a bit – even for the very same type and the amount of coverage. And, considering that you could be paying the premium for this coverage for 30 (or more) years, paying even just $10 or $20 per month more than you need to can really add up.
What to Consider Before Purchasing this Type of Policy Insurance Policy
If you have a mortgage on your home and you want to ensure that your loved ones can continue to reside there, then it is essential that you provide them with a way to pay off the mortgage debt. We can help you do that by finding the best mortgage protection insurance for your specific needs.
We work with over 30 different insurance carriers – so we can work with you in finding the policy, the benefits, and the premium that fits with your unique situation, even if you have various pre-existing health issues. So, to take the next step in making sure that your loved ones can remain in the place that they call home now, and in the future.