Mortgage Life Insurance- Mortgage Protection Insurance

Mortgage Life Insurance / Mortgage Protection Insurance

What is Mortgage Life Insurance?, also known as mortgage protection insurance, is a financial product used to protect your family and home.

Like all Life insurance, mortgage protection insurance is an agreement between you and a life insurance company (or carrier). You agree to pay a predetermined rate. The carrier agrees to pay a sum of money to your beneficiaries if you die–as long as you were still paying your premiums at the time of your death.

This mortgage life insurance death benefit can then be used by your beneficiaries to pay off your home mortgage.

Mortgage life insurance is one of the easiest ways to provide for the financial well-being of your family.

Which Type of Mortgage Life Insurance Should I Get?

If you are only looking for mortgage protection, then term life insurance is the best type of mortgage life insurance to get. It is also the most common type of mortgage life insurance purchased.

Other common types of mortgage protection insurance include return of premium (ROP) and universal.

Whichever type of policy you choose can be used solely as mortgage protection insurance. Or, by having a greater death benefit, it can provide even greater financial protection for your loved ones.

Many financial service professionals would suggest that you look at your entire financial situation, and then buy a policy that will cover all of your needs, including mortgage protection insurance. Mortgage protection insurance can be attained without a medical exam with many carriers. In certain circumstances, the premium may be rolled into the loan, or use cash proceeds froma cash out refinance to pay the first years premium.

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