If you have recently purchased a home, it is likely that you have received calls or information regarding Mortgage protection life Insurance. This is a type of insurance protection that can help you to ensure that your family can remain in your home, even in the event of the unthinkable.
What is mortgage protection life insurance?
Mortgage life insurance is actually term life insurance that can help your loved ones to pay off your mortgage balance in the event of your death. With this type of coverage, you can choose your spouse or other beneficiary to receive the policy’s benefit, which will in turn, leave your loved ones without the need to continue making payments on the loan.
For many people, this can relieve a tremendous financial obligation if a primary income earner passes away and it can allow survivors to go on without having to drastically uproot their lives at an already difficult time for them.
For many people, the death of a primary income earner means having to move away from a home they love because they can no longer afford the payments – but not if you have a mortgage life insurance policy.
How much is mortgage life insurance per month?
Just like with any type of life insurance policy, there are a number of different criteria that can factor into the price of mortgage life insurance rates.
These will include you:
- death benefit
- your health history
- smoking status
- length of coverage
Because most mortgage insurance policies are term life insurance, the longer your policy’s length (i.e., 30 years versus 20 years), the higher the premium is likely to be.
Customize a Policy:
In addition, today, people are more able to “customize” their life insurance policies in order to better fit their individual needs. You can do this type adding various riders to the policy. While these, too, can add to the cost of your premium, they can often be extremely beneficial for you and / or your loved ones if certain events occur.
Some examples include:
- Disability Income Rider – This rider will allow for payments to be made if you should become disabled and unable to earn an income for a certain period of time
- Return of Premium (ROP) Rider – This rider will provide a refund of the premiums that were paid into the life insurance policy, should you survive the entire “term,” or duration of the policy.
Another key factor in the price of your Mortgage Protection insurance will be the insurance company that you purchase it from. There are a lot of mortgage life insurance companies out there in the market place – and similar to purchasing most any other product or service, these insurance carriers all price their offerings in a slightly different manner.
But a quote is really just one small factor, and is really just a starting point when seeking this type of coverage. You also want to be sure that you have the very best protection for your specific needs. That is why working with an independent agent who can help you in determining which carrier you will qualify for – as well as the best price – is what is key. An independent agent can also help you in comparing several different policies side-by-side and determining from there which plan will be the best one for you.
This is because the cost can differ – sometimes by quite a bit – even for the very same type and amount of coverage. And, considering that you could be paying the premium for this coverage for 30 (or more) years, paying even just $10 or $20 per month more than you need to can really add up. Check out this chapter in our buyer’s guide to help you learn how to determine the cost of life insurance.
As an example, let’s take a look at a 35-year old male who is looking for $250,000 in coverage. Based on the mortgage life insurance calculator, for a 30-year term insurance policy, it is easy to see the difference in cost, based on the different carriers, as well as how the applicant would be viewed in terms of rating. For example, as a Standard rated policy holder, he would pay between $41.50 and $42.72 per month, depending on the company. In this case, he would generally be considered to be in “average” health for someone of his gender and age.
However, on the other end of the spectrum, if he was considered to be in excellent health, with an excellent family health history, he could almost cut his monthly rate in half. This could make a tremendous difference in the total amount that he would pay in policy premiums – especially over a 30-year period of time. What many people do not realize is that, not all insurance companies will rate their applicants the same. So, while one carrier might rate this applicant as a Standard, another might rate him as a Preferred – with all other factors being equal. This is why it is so important to work with an independent agent who can help you to shop and compare.
What Mortgage Protection Is Not
When obtaining a mortgage, it’s important to understand what mortgage protection is – and what it is not. This is because many people often confuse this type of coverage with another common coverage that is required by mortgage companies if you have less than 20% down on your home.
PMI, or private mortgage insurance, is a type of insurance protection that will protect your lender in the case of default by a borrower.
Lenders will require borrowers who have low down payments to purchase PMI in order to protect their financial interests – and it will cost you more each month for the PMI premium. If, however, you have put a down payment of 20% or more on your home, you won’t have to worry about this coverage.
What to Consider Before Purchasing a Mortgage Protection Insurance Policy
If you have a mortgage on your home and you want to ensure that your loved ones can continue to reside there, then it is essential that you provide them with a way to pay off the mortgage debt. We can help you do that by finding the best mortgage protection insurance for your specific needs.
We work with over 30 different insurance carriers – so we can work with you in finding the policy, the benefits, and the premium that fits with your unique situation, even if you have various preexisting health issues. So, to take the next step in making sure that your loved ones can remain in the place that they call home now, and in the future.
The post Mortgage Life Insurance appeared first on Local Life Agents.
This post first appeared on Life Insurance Quotes Online | Life Insurance Agen, please read the originial post: here