Mortgage Protection Insurance

Mortgage protection insurance is a guarantee that the house will be paid off in the event the person that has the policy dies. It is not unusual that only the breadwinner of the family has this sort of coverage. It is roughly .005% per month of the beginning mortgage amount. Mortgage protection ensures that if the person holding the policy dies that the covering company will pay the amount left to be paid in full.

This is something that does not have to be purchased as soon as a home is bought. Mortgage protection can be started at any time providing the health of the person needing the insurance is at least fair. Just like life insurance. rates go up if the person covered is a smoker or fit other health concern categories. As the house is paid for the cost of coverage goes down. The company will usually adjust the payments based on roughly the .005% that is still owed on the loan.

If the house gets paid off early there still may be benefits to the survivors if the person covered dies. Each mortgage protection insurance company works differently so check their policy to be sure about extended benefits. This is a great way to let people relax about their needs in the unfortunate event that someone may die.

Keep in mind that this type of coverage is not a full life coverage. Mortgage protection will only pay off the amount to be paid on the house if there is money still owed. It will not pay for final expenses, other debts, etc. If a person is POSITIVE that the life insurance already taken out will cover EVERYTHING when the person covered dies then there is no need for mortgage protection insurance. If it is unclear about how the funds will be distributed or when they will be available then research the options. Most companies will have policies that won't let a person fall behind on payments just because of legalities. They want to make the life transition is as easy as possible concerning paying off the house.

God asks His people to take out insurance on life by believing in His son, but it is also important to have insurance on the lives of family who get left behind. This type of coverage can help make the transition easier. The best thing to do is check out what current coverage the breadwinner in the house has and compare to what the alternative can offer. It is not unusual for a family to hold both life insurance and mortgage protection insurance. Remember: Coverage can be started at any time after the mortgage payments are in place.

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