Mortgage Life Insurance
What is Mortgage Life Insurance?
Mortgage life insurance protects you and your loved ones. This is an optional insurance and is worth considering when you have a spouse or family or others that depend on you financially.
With this insurance, you pay a monthly premium, and in the event of your death (except by suicide) the insurer pays off whatever the remaining balance is on your mortgage.
This makes life easier for your surviving family.
Always review your policy in detail to be sure of your coverage.
Do I need it?
This is a personal decision you must make. If you feel that you have enough assets or other life insurance coverage to provide for your family in the event of your unexpected death than you may not need it.
It’s best to talk to a life insurance specialist to help you determine how much your family would need if you were to die.
How Much Does It Cost?
The price for mortgage life insurance is determined depending on your age and your smoking status. Younger non-smokers will pay less. Your premium amount stays the same as you get older. To be considered a non-smoker most insurance companies require you to be 12 months smoke-free.
Alternatives to Consider
Another option to consider is traditional life insurance. There are a number of different types of policies and term lengths.
The main difference here is, if you die, instead of your remaining mortgage balance getting paid off, your beneficiaries are given a tax-free lump sum payment. This gives your family more flexibility and the option to pay off the mortgage or to use the money how they need.
We offer all clients MPP Insurance (Mortgage Protection Plan Insurance). This is mortgage life insurance as described in this article. We’re obligated to offer it to you, and you must either accept or waive this insurance before your mortgage can fund.
We suggest that unless you know with full certainty that you have enough coverage, you should take this insurance. As long as your premium is collected, the protection for which you have applied starts immediately. You will be sent a Certificate of Insurance, as evidence of your coverage. You can cancel this insurance at any time.
You can make an appointment with a life insurance agent from there, to figure out what coverage you would like and have it put in place. Once you feel you have adequate life insurance in place you can cancel your MPP insurance.
I can introduce you to a life insurance agent once you are ready.