Dec 6, 2008
Mortgage Protection Insurance
Mortgage protection insurance, also known as mortgage life insurance, is a type of life insurance purchased to cover your mortgage and provide financial protection in the event of your untimely passing. Not to be confused with Private Mortgage Insurance or PMI (which is used to protect your lender should you default on payments), mortgage protection insurance is instead used to protect your family and your home.
With a mortgage protection insurance policy, the death benefit is used to pay off the remaining balance on your mortgage. And if your mortgage is for thirty years, then a thirty year term life insurance policy is normally purchased (however, depending on the time remaining in the mortgage and other needs, the term of the policy can be more or less than the term of the mortgage).
Mortgage protection insurance can be purchased with the sole purpose of paying off your mortgage, but many financial planners would suggest that you look at your financial situation as a whole and buy a life insurance policy that takes all of your finances into account. That being said, mortgage protection insurance—purchased solely to pay off a mortgage or coupled with other needs—is a great investment that creates peace of mind now and could potentially save your family a lot of financial stress at a time when more stress is not needed.
At Wholesale Insurance, our goal is to make getting mortgage life insurance easy, affordable, and stress-free. To instantly see accurate mortgage life insurance quotes, fill out the form on this page.
