Mortgage Protection Insurance
In times of financial crises, such as in recession, a Mortgage Protection Insurance prevents you from defaulting on your home payments. It is a policy that covers monthly payments for your mortgage in cases where you were laid off, fired, injured, or ill. Mortgage Protection protects you from repossession of properties you have previously acquired through various mortgage loans.
At the moment that you purchase a house or lot through a mortgage company, you should purchase a payment protection policy to assure the lender that you will not default your mortgage payments.
Times like these make mortgage protection insurance more important than ever. Families need to protect themselves from catastrophic events that cause income to cease. A life insurance policy on the breadwinner to cover the home mortgage in the event of death or total disability can protect them from losing their house.
Mortgage protection insurance a consists of a term life insurance policy in the amount of the mortgage balance. In the event of the insured’s death, the proceeds from the insurance policy is used to pay off the mortgage debt so that the surviving family gets to own the house free of a mortgage. Some policies offer a decreasing term, which means that the payoff on the insurance decreases as the balance of the mortgage decreases from continued monthly mortgage payments.
An added feature of mortgage protection insurance is the job-loss rider. This add-on to your life insurance policy will pay your monthly mortgage payments while you are unemployed due to a layoff, injury, or other cause as stipulated in the insurance policy. In small towns and even larger cities a number of businesses and industries have had to cut their payroll and many people are out of work with few prospects.
The cost of mortgage protection insurance is low and the coverage large in comparison to other types of insurance policies. This makes term life insurance a prudent choice for ensuring that your family gets to keep their home in case your income stops because you die or you are incapable of working. Contact us You will have peace of mind knowing that you have done the right thing.