What Is Mortgage Protection Insurance?
Mortgage Protection Insurance is simply a Life Insurance policy taken out on the life of the borrowers of the property to cover the balance of the loan, should one of the borrowers die during the term of the mortgage. This is more important than ever in today's economy where both incomes in a family are generally needed to run the household. It is even more important if the household is able to make it on a single income and the other person does not work.
In more cases than not, Mortgage Protection Insurance is a plan where no medical exam is required and has a Cash-Back Option. A professional agent will generally structure a plan to allow you to pay your home off 5, 10 or even 15 years early! This would in effect save you thousands of dollars over the life of your loan. Many people today are using some sort of early acceleration method - either by-weekly or sending in extra money to principal - in an attempt to pay the home off early, already. By simply diverting the current money already been spent to accelerate the mortgage, to a Mortgage Protection Plan, the borrowers can now accomplish two things at once without spending any additional money: 1) Ensure the family is protected in the event of an untimely death; and 2) Accelerate the mortgage.
Do I Need Mortgage Protection Insurance?
This is a very simple question to answer. If your death would create a financial burden on your loved ones and they would no longer be able to live in the family home, then the answer is "YES!". Many families are already underinsured and quite frankly do not want to discuss or plan for an unexpected death. This however, is the worst possible thing to do. Any type of Life Insurance that either builds cash value or comes with, what is known in the industry as a Return of Premium option, should not be viewed as an expense, but an investment. Anything that is put in place to make sure your loved ones are protected, whether you are here are not, is the most important thing that you could possibly do.
I Have Employer Sponsored Life Insurance. Do I Need Mortgage Protection?
Absolutely! Insurance provided at work is very inexpensive. But if you think about it, you are entrusting your most valuable asset, the most important people in the world to you, to something that costs between $8 to $10 a month. This is not a sound financial solution that you should expect to be there should your death occur.
I Have Life Insurance. Do I Need Mortgage Protection?
Absolutely! Your current Life Insurance policy, generally was taken out to replace your income for a certain period of time. If that policy is used to take care of the mortgage, how will your children go to college?, who will pay for your daughter's wedding?, how will your children's child care be paid for?, how will your children's private school be paid for?
All too often, we find that the general mindset of America is quite different from Wealthy. The Wealthy stockpile life insurance to pass wealth on to future generations and do so Tax-Free and ensure their family is taken care of should something unexpected happen! Life Insurance probably has more living benefits than death benefits, but avoiding speaking to a profession will keep you in the dark about what is the most important financial decision you will ever make! Give Family First Life a call today to discuss what options are available to you!
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Asset Protection, Wealth Preservation & Wealth Accumulation
