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Have you recently purchased your home?
Odds are you’ve been inundated with offers for mortgage protection life insurance offers through the mail.
You might wonder if mortgage protection coverage is worth the money?
I’m here to tell you it definitely is! And my goal today is to my top 13 reasons why…
Protecting Your Home With A Mortgage Protection Policy Is Worth It
First, congratulations on your new home purchase!
Second, have you considered what would happen if you suddenly died before paying off the mortgage?
It’s not like it goes away. Likely it will stick around and become a burden on the people you love, since your family has lost your income-earning power.
The number one reason I recommend a mortgage protection life insurance plan is because it helps keep your family from losing the home if you pass away unexpectedly.
Mortgage protection coverage pays off, either partially or fully, your home mortgage.
If you’re like most Americans, your home mortgage is your family’s largest liability.
Recall all the time, money, and effort put into saving to buying, moving into, and making your new house your home. Now imagine losing it all, you died earlier than expected. This is why a life insurance mortgage protection plan is such a good idea.
2. Cover Monthly Payments
What if your budget is strapped and you worry affording mortgage life insurance is too expensive?
Consider buying a mortgage payment protector policy.
Here’s how it works.
You select a smaller size life insurance policy that won’t pay the mortgage balance off, but will pay several years’ worth of mortgage payments instead.
This strategy gives your family breathing room to figure out how to refinance the mortgage for a better rate, or to properly prepare the house to sell for top-dollar.
3. Provides Liquidity
One of the biggest reasons to own life insurance is to provide money for obligations such as taxes and debts.
Life insurance can take care of those obligations and debts like no other product can.
4. Buys Time
Can you imagine type of stress your loved ones would experience struggling to pay the mortgage payments without your earnings?
Mortgage life insurance buys time for your loved ones to pay your final debts.
Imagine if you were to pass away and your mortgage is still due. Payments don’t stop when you die! And without enough funds, your family risks foreclosure and eviction.
5. Your Family Is The Beneficiary
Mortgage protection life insurance allows you to designate anyone in your family as the beneficiary.
In my experience, most adults choose their spouse or significant other.
Your loved ones named as beneficiary have total control over the life insurance payout. Most use it to pay off the mortgage. But many use a portion to pay off other debts like credit card debt, and set aside to pay college expenses for children.
6. No More Decreasing Coverage Plans
Many mortgage credit life insurance plans purchasable through your lender shrinks in coverage as time progresses.
This means you continue paying the same premium despite your credit life insurance reducing in coverage amount. You’re paying the same for less value.
With a private mortgage protection life insurance policy, your coverage never decreases during the length of the term. Whether you buy a 10-year, 20-year, 30-year, or mortgage payment protector plan, your coverage amount is identical to the amount you originally took out.
7. Exams Are Optional
Do you worry about having blood withdrawn for a life insurance exam?
Many life insurance companies require an exam for coverage consideration.
Typically, this involves a blood sample, urinalysis, health history questionnaire, and blood pressure readings. Sometimes an EKG or stress test may also be requested for larger amounts of coverage.
This type of process is unnerving. The idea of being poked with a needle or going through an invasive exam is not something many people find attractive.
What’s the solution?
Enter the non-medical life insurance mortgage protection plan!
These plans only existing require health records from your doctors to determine insurability. No exam required!
8. Extra Benefits
A mortgage protection life insurance policy is not just about paying a death benefit when you die.
Many life insurance companies offer “living benefits” that provide advantages for you while you’re alive.
Here’s how they work. At the time of application, you request additional add-ons, or “riders,” to enhance your policy.
Most popular riders include:
- Waiver of premium rider. If you get sick, hurt, or cannot work, this rider suspends your premium payments while disabled.
- Chronic illness rider. If you are struck with a severe illness or health event such as a heart attack or cancer, this rider pays a substantial cash-benefit to you.
- Accidental death benefit rider. If you die by accidental means, this rider pays an additional death benefit to your beneficiary.
9. Get Your Premium Back
You can actually buy a policy with an additional rider to return your premiums if you satisfy the premium payment requirements over the life of the policy.
10. Qualify Up To Age 90
Do you worry your advanced age will prevent you from qualifying for some sort of life insurance?
The good news is that there are many types of life insurance policies available despite being a senior citizen.
While most mortgage term life insurance is available up to age 79, mortgage payment protector programs are available to age 90.
11. Custom-Tailor Your Policy
Having options is a good thing, right?
With mortgage protection coverage, you have a multitude of options to custom-tailor your policy to exactly your needs.
For example, you can custom-tailor the length of coverage from 5 years to 3o years, or beyond if you want lifetime protection. You pick and choose what add-on riders make most sense. And you decide how much coverage you need, whether you want $25,000, or millions in coverage.
What happens if you move out of your current home? Is your mortgage protection insurance policy any good?
The good news is your policy is completely portable, even if you move into a new home.
In fact, you’re not required to own a home to keep your policy. Since it is an individual policy, what you do with it is completely up to you.
It pays a cash benefit to your beneficiary when you die, regardless of whether or not you own a home or which home you are living in when you die.
13. It’s Affordable
Because you can customize the length of time as well as the coverage amount, a mortgage protection life insurance plan can be tailored to your specific budget.
Coverage is affordable for just about any situation you may find yourself in. You also have the ability to scale up coverage and the coverage time in order to make the premium affordable.
My experience in the life insurance businesses has led me to predominantly work with people 50 and older.
I approach many people who are on a fixed income who are facing disability or retirement and are concerned about making sure whatever premiums they pay are not out of range and out of budget.
My response to them is that their budget matters to me and the worst type of policy is the one that you end up dropping in six months because the insurance agent talked you into a premium that you cannot afford. My philosophy is to make sure that insurance is easily affordable for my clients.
In fact, I want you to buy a plan and forget about it because its just that affordable. That way you won’t be stressed about it every month and the plan can do its job should you ever need it.
Hopefully this article helped you understand the importance of mortgage protection life insurance.
If you’d like me to help you out with finding a policy, call 888-626-0439 now, or send me a message here.
Thanks for reading!