How To Protect Your Home Mortgage Obligation
Updated: Feb 6
If you have a home mortgage, and a monthly payment that is dependent on your earned income, mortgage protection insurance is a cost effective way that can pay off your home mortgage or allow you to continue making your monthly mortgage payment even if you have no earned income.
According to the department of housing and urban development, more than half of all home foreclosures are the result of either the death, or the disability of the homeowner.
Because every year thousands of home owners in their thirties, forties, and fifties, are critically injured in an accident, or diagnosed with an illness, or disease like cancer, that either results in their death, or results in their permanent disability. Which keeps them from working and earning an income.
And without their regular monthly income, many of these families are forced to move out of their homes, and away from their friends, and neighbors, schools, and communities.
Of course no one wants to think about losing their home, much less about their own death or disability. But those are the facts.
We are all at risk. Everyone of us for an untimely death, or a permanent disability from a critical injury, or serious illness, that results in the loss of our monthly income.
Even households with two incomes, quickly discover that they can no longer afford the mortgage payment on just one salary.
Like the 46 year old attorney, undergoing chemotherapy and radiation treatments for breast cancer, which has kept her from working for more than a year now.
With only her husband's salary, the family's household income, is only half of what it was when she was working. And it simply isn't enough to keep up with the mortgage payment on their new home. As well as school tuition, car payments, property taxes and health insurance.
Or the 38 year old salesman, who's been physically disabled and unable to return to work for several years now, after a severe back injury from a head on collision with a drunk driver. Although his wife is working, she is earning less than half of what they needed, when they originally qualified for their home mortgage.
Ask the 44 year old mother of two young children, whose husband died at 46 after a two year battle with pancreatic cancer.
Or the 42 year old father, who was left with his two young children, when his 39 year old wife was killed in a car accident.
Ask them if they ever thought they would lose their home, because they could no longer afford their mortgage payments.
So how can you protect your family's home from the risk of your death or disability? With Mortgage Payment Protection.
Mortgage Payment Protection is actually two types of coverage. One that will pay off your entire mortgage tax free, if either you or your spouse were to die in an accident, or from any illness, or injury.
And another, that will send you tax free money every month, to make your mortgage payments, while you are unable to work and earn your regular monthly wages or salary, because of a long term illness, or injury.
Think of it like this, your mortgage lender or bank requires insurance on your home, to protect the value of the property from the risk of natural disasters like fire, storms, floods, or earthquakes.
But the mortgage payment, is entirely dependent on the homeowner's income. So doesn't it also make sense to ensure the homeowner against the risk of death or disability?
You can even get coverage with a full refund if you never have a claim. What's more, if you sell your home and buy another, you can keep the coverage and apply it to your new mortgage.
So ask yourself this, does it make sense to assume that you will never become one of the 48 million people currently classified as disabled by the United States census bureau?
Or one of the 500,000 people between the ages of 30 and 60 who die every year? Or does it make better sense to ensure your home ownership with Mortgage Payment Protection?
After all, isn't it better to know that your family will always live safely and securely in the same home, in the same community, with the same friends, neighbors, and schools? Than to regret that you could have insured your mortgage, but decided not to?
What's the Difference Between PMI and Mortgage Protection Insurance?