Mortgage Protection Insurance

  • Do you have a mortgage on your home?

  • Do you want to leave your home free and clear for your family if you were to pass away? 

  • Is making sure your children have access to a college education important to you?

  • How would your family manage financially if you were not there tomorrow? 

  • How do you feel about that?


If we could show you how to get the insurance you need to protect you and pay off your mortgage would it be worth 40 minutes of your time to sit down and talk about it?

Your home is a place of happiness and fond memories. It's the primary source of safety and shelter for you and your family. But if you were to pass away, would your family be left struggling to pay the house payment you leave behind? ​If someone depends on you financially, you need life insurance.

 

What's the Difference Between PMI and Mortgage Protection Insurance?

What is private mortgage insurance?    


Private mortgage insurance (PMI) is a type of insurance you may be required to pay for when you take out a conventional home loan.

If you’re buying a home, lenders require PMI as part of a conventional loan to protect them in case you end up in foreclosure. The insurance protects the lender for at least some of the shortfall if the home is sold in foreclosure for less than the outstanding amount of the mortgage. PMI is generally required if you refinance your mortgage with less than 20 percent equity. The ​ insurance can be either public or private depending upon the insurer.

PMI is a layer of protection for lenders, but an added expense for you as a borrower. Conventional loans, which are any loans not backed by the federal government, are the most popular type of mortgages.

What is ​mortgage protection insurance?

So who's looking after your interests? As an income earner, you would want to make sure that your own individual mortgage protection insurance policy replaces your income and takes care of your family, should anything happen to you.

Mortgage protection insurance (MPI) protects homeowners if a health issue arises and they become disabled, or a job loss is lengthy. In the worst-case scenario, this type of coverage can pay off the balance of the mortgage if you die.

Mortgage protection insurance, or MPI, is another kind of life insurance. The cost of the monthly premium varies, depending on the amount of the loan and the individual’s age and health. Some MPI policies cover a mortgage if there is a disability, and those premiums depend on the borrower’s occupation.

If you die with a mortgage balance and have a mortgage protection insurance policy, your insurer pays the remainder of your loan balance directly to the lender. Any heirs, such as a spouse or children, won’t have to worry about making future mortgage payments or losing the home.

MPI policies that pay a benefit for a job loss or a disability typically cover your mortgage payments for a year or two. The policy will spell out if there is a mandatory waiting period before payments are made. These MPI policies generally cover the principal and interest portion of a mortgage payment and not other fees like homeowners association dues, property taxes or homeowners insurance. You may be able to add a contract rider, though, to cover these expenses.

Now there's a way you can make sure that your family stays in the home you've worked hard to provide for them no matter what the future holds. With mortgage protection insurance you can design a safety net that could be used to pay your mortgage payments after your death or even pay off the mortgage entirely.

 

See How Our Plan Stacks Up…

Mortgage Protection Insurance  vs.  Private Mortgage Insurance (PMI)

Mortgage Protection Insurance

Structure your plan to meet your needs

PMI

The mortgage determines the structure

Choice

You choose your beneficiary

Choice

The mortgage holder is the beneficiary

 

Security

The death benefit goes to your family, they choose how to use it

Security

The death benefit automatically goes to the mortgage holder

Protection

The death benefit does not decrease

Protection

The death benefit generally decreases with the outstanding mortgage debt

 

Portability

You can take your plan with you when you sell your home or refinance

Portability

A traditional mortgage plan is generally tied to a specific mortgage

Cash Value

If you choose a universal life policy, your plan can build cash value for the future

Cash Value

Traditional mortgage plans do not build any future value

 

Living Benefits

Riders can provide access to your death benefit in the event of a terminal, chronic or critical illness

Living Benefits

NO Living Benefits

Optional Riders

Optional riders can provide benefits in case of disability or unemployment

Optional Riders

No disability or unemployment benefits

 

We work with over 100 life insurance carriers.
Tell us your goals and let us help you design a policy that protects your family and fits your budget at the same time.

 
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Did You Know That......

7 in 10 American households are dependent on two incomes? This means that 70% of households are at risk of losing the house they call home should they loose a source of income due to illness, disability or worse. This is where the importance and the why of mortgage protection comes in.

Mortgage protection insurance insures that your loved ones can continue paying mortgage payments in the event of your untimely passing, never having to deal with the fear of losing your home.

 
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