Mortgage Protection Insurance Leads
When you bought your first house, signing all those mortgage papers was just the beginning. You had no idea how popular you were to become with marketing agencies who send you junk mail for everything from brass door hinges to mortgage protection insurance.
That's right, there are many companies who specialize in products for your home.
What they may not know is that you are already living on the edge, just from the cost of the mortgage, possible homeowners association dues and that monthly water bill. With so much money being funneled into what's most people's biggest investment, it's important to reserve money to protect that house of yours.
Sure you buy homeowners insurance so that you can rebuild your house if it burns to the ground, but what happens if you pass away, leaving behind your family and the mortgage? Will they have to sell that house that you have invested so much money in so they can just barely survive?
That's where mortgage protection insurance leads come into the picture.
Be sure to use the FREE comparison tool above to start your search for insurance.
Right after you sign your new mortgage or refinance your house, you will likely be inundated with pleas for you to buy mortgage protection insurance. A lot of households do buy mortgage protection insurance. What may surprise you is that it is actually a type of life insurance, rather than a homeowners-type insurance product.
The assurance for you is that the protection is used the way you intended, rather than tempting your family to squander cash away on the temptations of toys and expensive vacations, for instance.
Mortgage protection insurance typically pays off your house note if you pass away. Additionally, a mortgage protection insurance policy might pay toward your mortgage for up to a couple years if you are laid off or forced to go onto disability. It buys you time in the latter instances.
The best part about this type of insurance product is that there are only few questions with nearly full guaranteed acceptance of applicants. That means that you are pretty much guaranteed you will receive a policy if you apply for it.
Another bonus for policy holders of mortgage protection (MPI) is that many policies return a portion of the premiums if you never file a claim. It will not be a huge amount, but it's money you might even forget you are owed. It will not keep pace with inflation either, but it's still money.
Is mortgage protection worth it?
If you have gotten so far as to consider mortgage protection insurance, then you may be responsible enough to entertain buying term life insurance too. The good part about the mortgage protection coverage is that it is specifically paid onto the mortgage, so your loved ones cannot squander that money, per se.
The drawbacks are that you may be better off financially just buying a term life insurance product and specifying in your living will or irrevocable trust that your family must pay off the mortgage with a portion of the term life proceeds. Why would you do that?
Well, the annual premiums for mortgage protection insurance may be more than double the premiums you would pay for term life insurance. What's more is that if you are a non-smoker, you may pay more for mortgage protection products. Term life rewards you for not smoking, meanwhile.
With term life you can make sure the mortgage gets paid and maybe that there's extra money left over for your kids' college educations, living expenses, property taxes and other items that maintain your family's standard of living.
In addition, with mortgage protection, essentially you are agreeing to a decreasing benefit as years pass and you pay down your mortgage. That's another drawback for many homeowners.
Organized and Compartmentalized
For other households, they respond by purchasing both sets of products: term life insurance and mortgage protection insurance. After all, you cannot file a claim with your term life to pay your mortgage if you are unemployed for a couple years.
Meanwhile, mortgage protection coverage may do just that.
Concerned about the Medical Exam?
Many people may have a great house with a mortgage, but have medical issues that would long-delay or prevent acceptance to a term life insurance policy. For you, those mortgage protection leads are an excellent opportunity to protect your biggest investment in the event of your death.
To skirt the declining benefit of the mortgage protection insurance, consider shopping among general acceptance term life policies as well. This way, your family would enjoy a level term, rather than declining term, regardless of how much money you owe on your mortgage.
In other words, you would benefit because general acceptance does not require excellent health or a medical exam, may cost less than mortgage protection and pays out a full death benefit.
Tips for Finding MPI
If you are interested in any of the following, then shop around and get quotes:
- Get as many quotes as you can find.
- Compare quotes for coverage carefully.
- Check the credit worthiness of every insurance carrier to make sure they are financially strong enough to pay out claims.
- Note age limits on policies.
If you decide to go the route of MPI coverage, get all the quotes you can and compare them. Do go to A.M. Best to find out the financial strength of any insurance company from whom you may buy a policy. If you are 36 or older, you may run into difficulty finding 30-year-mortgage protection insurance. On 15-year mortgages, you usually have to be younger than 60.
This is one time you do not want to just ask your friends and follow suit with what they have done. Mortgage protection insurance may be your best bet depending upon your individual situation. Otherwise, term life insurance may suit you best.
Whatever you do, if you have dependents of any sort, make sure that you have protection to pay for their needs if you pass prematurely from their lives.
Feel free to use the comparison tool below to start your search!