Have you just purchased a new home recently? Chances are that your mailbox is filling up with postcards offering various mortgage life insurance policies to protect your family in the unfortunate event of your untimely death. Other offers may include offers of mortgage disability insurance that helps you make your mortgage payments in case you become disabled and unable to work. While it is a good idea to carry a term life insurance policy to cover the payoff amount of your mortgage, not all mortgage life insurance policies are created equal.
Some of these policies only offer a minimal payoff and lose their value to the policy holder by gradually reducing the death benefit to match the amount reqired to pay off the mortgage while costing the same monthly premium. Other mortgage life policies are really overpriced just because they are packaged as mortgage protection policies. That is why it is a good idea to have an experienced professional working with you so that you fully understand the policy that you end up purchasing. This will save your family from some major headaches later on down the road if something happens to you.
So, what can you do to ensure that you get a mortgage life policy that will fully fulfill the finacial needs of your family? The first thing you need to do is answer several questions for yourself about your financial situation and how your family would need to be provided for in case you were to die before your mortgage was paid off. Knowing the answers to these questions beforehand will really help your agent customize a plan for you to ensure the financial stability of your family.
1. How much is your hose worth and how much is owed on the mortgage?
2. How many young children do you have that rely on your financial support?
3. Could your spouse provide for the family with just their income even if the mortgage was paid off in full?
The reason for the last question is that many policies also offer additional disability benefits that would pay the mortgage payments if you were to become disabled, and these can be a real asset to your family if you became unable to work. These are just a handful of questions to get you thinking about what the needs of your family truly are and in turn will have you better prepared when talking to your agent.
Mortgage life insurance was designed to help protect your family from being forced to move in case of unfortunate circumstances. Sign up for the free newsletter to get professional advice from Jeff Futrell, “The Mortgage Protection Doctor” who is the industry leading expert on mortgage life insurance. It is an investment well worth having for your families peace of mind.
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