Why Mortgage Protection Insurance?
Your Home may be the most valuable asset you own. As a parent, you work hard to provide for your children and spouse. Maybe you both work, maybe only one of you works, and the other
stays at home to take care of the kids. The bottom line is how will your family be affected financially should one of you die? Would they lose the house? Would they lose all of the hard
earned money you put into the house? The easiest and most effective way to protect your home and family is through Mortgage Protection Insurance.
The Statistics Nobody Likes to Think About
According to the Commissioners Standard Ordinary Table of Mortality, the likelihood of someone
dying before paying off a 30 year mortgage is:
1 out of 12
1 out of 8
1 out of 6
1 out of 4
1 out of 2
What is Mortgage Protection Insurance
Mortgage Protection Insurance is a product designed with your home in mind, with 15, 20, 25, and 30 year term periods to match the length of your loan. And here is the best part, the full benefit amount goes to your beneficiary, as opposed to your financial institution as it did in the past. This means the money can be used to pay the mortgage, childcare, college tuition, now and in the future, house Cleaning and upkeep for your home, medical bills or other debts, and you can choose if you would like it to be paid in monthly income payments, or a lump sum.
The Mortgage Protection Programs are issued without an invasive medical exam, and are immediately effective once approved for coverage. There are a variety of options that go along with Mortgage Protection Insurance, making it easy for you to customize the policy to fit your specific needs.
How to choose a Mortgage Protection Provider?
Mortgage Protection Policies offer a 100% FULL REFUND on ALL premiums paid into it should you not receive any benefits during the coverage period. This means that if you outlive the policy term, you get all your cash back (less any outstanding loans against the policy). This is a major benefit of Mortgage Protection Policies, because the money can then be used to pay the remainder of your mortgage off early, saving you thousands in mortgage payments.
The death benefit will remain level for the length of your mortgage protection policy. With many mortgage protection plans, the benefits decrease each year
while the premium remains the same.
The policy is portable which means that if you sell your home and buy another or refinance your present mortgage, this plan can simply move with you to continue
to protect your next mortgage. Regardless of how many times you move, you will never need to qualify for another plan or risk losing the one you have.
The premium remains level for the life of the policy
Paid out if your death is a natural occuring or accidental
Extra Accidental Benefit
If the death occurs as a result of an accident, the death benefit will pay an extra50% of the base policy for your beneficiary.
There are living benefits meaning you do not have to die for these policies to protect your family. You may request either a partial or full acceleration of your policies death benefit if diagnosed with a chronic, critical or terminal illness. This
may be used to help pay for medical expenses, pay the mortgage off early, pay for alternative treatments, etc. or just to take a trip. Many people who are given a short time to live would love to take that dream vacation they have always wanted to do. This money will allow them to do that.
You decide who receives the proceeds of your Mortgage protection policy. Whether that be your husband or wife, children, Mom, dad, etc. The money is not subject to the debts of creditors, and it cannot be touched by your financial institution unless express permission is granted. The benefit is also paid out tax free to the beneficiary.
How to choose a Mortgage Protection Provider?
Company Financial Strength
It is important when considering Mortgage Protection Providers, to take into account how healthy the finances of the insurance company is. Some insurance companies have much better financial conditions than others, and it is important that when choosing a Mortgage Protection company, your money is going to be in good, trustworthy hands. The companies we work with at Retirement Life Agent are all A rated companies, meaning they have the financial resources and background to provide stability for our clients. This is something we take very seriously.
Not all Mortgage Protection Companies fully guarantee the premium for the entire term of the policy. This means that at some point down the road, you might get a letter in the mail from your Mortgage Protection Company telling you your rates have just increased, and either you pay it or you lose the coverage. At Retirement Life Agent, we only work with providers that guarantee the premiums for the entire term of your policy.
Mortgage protection products offer you the ability to convert your coverage, after the initial term is over, into a whole life policy without you having to medically requalify again. The ability to convert these products can save you the stress and the financial burden of changing health conditions. Many times, if your health changes drastically, you may no longer qualify for many other options, and the ones you do will be substantially more expensive.
Every Mortgage Protection Company establishes its own health and lifestyle credentials, and they use these requirements to determine who may be eligible for their specific products. For example, chronic lung disorders, or high blood pressure may disqualify you from one Mortgage Protection Company, and will be acceptable with another. In order to serve all of our clients' needs, we work with many companies that each have their own individual requirements. So even if you have been turned down before by other companies for health reasons, there may still be options available for you.