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In This Article I’m Going To Talk About Mortgage Protection Insurance For People Over The Age Of 60
You’re here because you’re a senior or helping a senior find quality life insurance to pay down a mortgage in the case of an early demise.
Also, you worry what would happen to your spouse or family if you lose your home to foreclosure if your survivors didn’t have the money on hand to pay the mortgage payment.
My goal is to help you understand how these programs work, so you can see if mortgage life life insurance is a good fit as a senior citizen.
NOTE: Would you prefer me to present this information to you in video format? Watch the video below for the complete presentation. Enjoy!
Here’s An Overview Of Today’s Topic:
- What Is A Mortgage Life Insurance Program?
- Who Buys A Mortgage Protection Life Insurance Plan?
- When Should You Get A Mortgage Life Insurance Program?
- Types Of Coverage
- Qualifying For Mortgage Protection Insurance As A Senior?
What Is A Mortgage Life Insurance Program For Seniors?
And in most cases, the beneficiary uses the benefit to pay off the mortgage upon the senior’s passing.
The main reason why seniors purchase mortgage life insurance program is to retain ownership of the house without the financial burden of the mortgage.
Mortgage protection is life insurance
A mortgage protection program is a life insurance program. While there are alterations of mortgage protection such as credit life insurance, which only covers the home and decreases as time passes.
A mortgage life insurance plan:
- Typically is term life insurance
- Has 10, 15, 20, and 30 year term lengths.
- Pays out from the first day for natural and accidental death.
You can use your mortgage life insurance plan for reasons other than paying off your mortgage. For example, your mortgage protection program to pay for final expenses, take care of other obligations, and replace your income.
Who Buys Mortgage Protection Life Insurance?
Why? Because they recognize that life is fragile. We’re here today and gone tomorrow. And protecting important investments like your home is worth the expense.
Foreclosure due to death is a common reason why families lose their homes.
People who buy mortgage life insurance want to protect their home because represents a cherished place where memories were made, and an important part of their identity.
Mortgage payment eliminates the risk of losing the home because the survivors cannot handle the monthly mortgage payment. This makes it easier to pass your home on to your children, who may otherwise not be able to afford the expense.
When Should You Get A Mortgage Life Insurance Policy?
My recommendation is to purchase a mortgage life insurance program as soon as you recognize the need to have it.
Here’s the truth.
As a senior citizen, you’re not getting any younger! And unfortunately life insurance tends to escalate in price with each year that passes.
Types Of Coverage
There are a number of different kinds of policies available for seniors who want mortgage protection coverage.
Let’s look at each option in detail.
Full Or Partial Mortgage Pay-Off
A full or partial mortgage pay off plan uses term life insurance plan that lasts 10, 15 or 20 years. Sometimes you can qualify for a longer length.
Wonder how term life insurance works? It’s pretty straightforward.
When you pass away while the term policy is in force, the insurance company pays the beneficiary amount of coverage.
Seniors can qualify for term life insurance coverage as low as $25,000 with some companies, and up to six and seven-figure amounts if your need is that great.
Your beneficiary decides what to do with the money. They’ll either pay off all or some of the mortgage, and use the remaining balance for your final expenses and other debts.
When the mortgage is more than the death benefit.
Sometimes, seniors will qualify coverage that would not pay off the entire mortgage balance upon their demise.
Typically, seniors opt for partial coverage because they cannot afford the higher premiums associated with higher coverage.
This is what we call a “partial mortgage coverage plan.”
Here’s how it works.
When the insured passes away, the beneficiary puts the entire balance of the life insurance towards the mortgage. This both shortens the time to paying off the home substantially, and also gives the opportunity to refinance the mortgage to lower premium payments since the house has a higher equity value.
Whole Life Insurance
In some circumstances, a senior may not qualify for traditional term insurance because of pre-existing health issues.
This is where applying for whole life insurance may make sense.
If the case is the senior cannot medically qualify for mortgage life insurance, I recommend a simplified issue whole life insurance product.
How simplified issue whole life insurance works.
This type of plan is a little different than a traditional mortgage term life insurance product.
Folks buy these plans NOT to pay the mortgage, but to provide liquidity and cash-on-hand to keep the mortgage payments paid for a number of years.
I like calling these plans “mortgage payment protector plans.”
Simplified issue whole life insurance solves the problem of not medically qualifying for term life insurance for mortgage protection.
Without life insurance of ANY kind, your spouse is STILL in the position of making the mortgage payment.
If she can’t, she may have to sell at a discount or foreclose, losing home equity, furthering her financial demise.
Mortgage payment protector programs give your spouse much-needed breathing room to continue the mortgage payments for several years. This gives her time to sell the house for the best price and retain the home’s equity.
How To Qualify
Ready to see what type of mortgage life insurance plan you may qualify for?
It’s simple to get started.
Call us at Buy Life Insurance For Burial at 888-626-0439 now. Or, send a message here requesting a free quote.
Buy Life Insurance For Burial is different from many life insurance agents. We represent a variety of different life insurance plans, allowing us to shop around to see which company will give you the best combination of price and coverage.
I hope you found this article useful and that it has gotten you to thinking seriously about life insurance coverage to pay for final expenses, replace your income, or to cover whatever your life financial concerns might be.
If you get in touch with us today at 888 626-0439 you can speak to a insurance professional who can answer any questions you might have and provide a free-quote. It takes less than 10 minutes and requires no purchase.
You can also message us using the message option on the left hand side or at the bottom of the screen. Let us know what you’re interested in and provide your contact details. We will get back to you within 24 business hours with an obligation free quote.
Thank you for reading and for your interest in Buy Life Insurance for Burial.