Mortgage Protection Insurance
What is mortgage protection insurance?
Mortgage protection insurance is a type of life insurance that is designed to pay off your mortgage (tax-free) in the event of your death. Policies may also include disability, unemployment, critical illness and return of premium.
How mortgage protection works…
Mortgage protection insurance functions much like other life insurance policies: You pay premiums to the insurance company to purchase a specific amount of mortgage protection coverage. Those premiums are based on your attained age and your health, as well as the value of your home and the payoff amount. If you pass away while the policy is in force, the insurance company provides funds to pay off your mortgage.
Mortgage Protection Insurance for the Peace of Mind You Need
Your home is likely one of your biggest investments, and mortgage protection insurance provides peace of mind that it's protected. With a mortgage protection plan, you can prevent your family from selling or losing their home due to the loss of your income, whether through death or incapacitation. Keep reading to learn more about protecting your family's home with mortgage protection insurance.
Frequently Asked Questions About Mortgage Protection Insurance
Here are some common questions and answers to help you decide if mortgage protection insurance is right for you.
What Is Mortgage Protection Insurance? Is It the Same as Mortgage Insurance?
There is some confusion about mortgage protection insurance which stems from the terms 'mortgage insurance' and 'mortgage protection insurance' being used interchangeably.
Mortgage protection insurance (MPI) is a type of life insurance. It is not the same as mortgage insurance, or more accurately, private mortgage insurance (PMI), which is sometimes required to qualify for a mortgage. PMI protects the lender from a borrower defaulting on the loan. If you have PMI as a condition of your mortgage loan and you default for any reason, including your disability or death, your family still owes the loan balance. If they are unable to pay, PMI will reimburse your lender, but it will not save your family home. For that, you need MPI.
What Is a Mortgage Protection Plan?
A mortgage protection plan is a term life policy that will pay off your mortgage loan, eliminating the debt for your family. This type of mortgage insurance protection allows you more control of insurance pay-off money as it can only be used for the mortgage. It pays the lender directly, preventing grieving family members from having to handle money during a difficult time. Other types of mortgage protection plans cover you if you become disabled or unemployed.
How Much Is Mortgage Protection Insurance?
That depends. Everyone's age, health and financial situations are different. Mortgage protection insurance may or may not be an option for you. We are honest with our clients about what life insurance products will best meet their goals.
Get a Mortgage Protection Insurance Quote From Estate Planning Inc
Our mission, vision and values are centered on commitment and client trust. Contact Estate Planning Inc to determine which of our A+ rated insurance partner products are right for your family and home.
"For now I have chosen and consecrated this house so that My name may be there forever, and My eyes and My heart will be there always" 2 Chronicles 7:16