5 Reasons To Buy Mortgage Protection Insurance (2023 Update)
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Owning a home is the American dream. But they are not cheap. And what happens if an income is lost due to death or disability? That’s where mortgage protection life insurance comes in.
In this article we will go over the purpose of mortgage protection life insurance, how it works, how to qualify, and sample rates available that are locked in for life.
Table Of Contents
- What Is Mortgage Protection Term Life Insurance?
- Age Limit
- Term Life Insurance
- Living Benefits
- Return Of Premium
1) What Is Mortgage Protection Term Life Insurance?
There are many ways to protect your family from your mortgage in case of loss of income. One of the easiest and most recommended is to take out a term life insurance policy for the amount of the principal that you owe. It is crucial to safeguard your family and loved ones against the sudden loss of income due to death or disability. It has many uses including:
- Ability to Pay off Mortgage
- Chronic Illness
- Critical Illness
- Terminal Condition
- Return of Premium (Get your money back)
- No Medical Exam
2) Age Limit
Almost any age can get mortgage protection insurance. For almost every insurance company, 80 is the oldest age that they will offer coverage for mortgage protection insurance.
If you are over this age, never fear, there are whole life options available, but those work a little differently.
Click here to read more about final expense whole life.
3) Term Life Insurance
While there are some insurance policies that will simply pay the mortgage and nothing more if you die, these are expensive and inflexible. Most people nowadays take out a term life insurance policy to cover the mortgage and any other bills and loss of income that may arise, and term life insurance comes with additional benefits.
You can get a term that will cover the remaining years of the mortgage, and even elect to get all of your money back at the end of the term if you prefer.
4) Living Benefits
Probably the best thing about using a term life insurance policy for mortgage protection is the ability to use the living benefits of the policy that are automatically built in.
If you are diagnosed with a…
- Terminal Illness
- Confined Care
- Chronic Illness
You can use a portion of the insurance payout while still living to address those costs.
5) Return Of Premium
A huge plus of term life insurance is the ability to get 100% of your money back at the end of the term.
This effectively makes the cost of insurance ZERO.
And the payout to you is tax free.
For example, if you paid $50/month into a term policy for 30 years, thats $18,000 that you’ve paid in premiums. If you select the return of premium option, you would get a check for $18,000. Not an insignificant sum of money.
The only catch to return of premium is that it comes at a higher monthly payment, so make sure it still fits in your budget.
If you want to see quotes from all of the top companies, fill out our quote form.
The truth is, everyone needs life insurance in some form or another. If you are worried about your family paying the mortgage if you pass away or are disabled, a term life insurance policy is the cheapest option and gives you the most benefits and flexibility.
If you don’t want to pay a monthly premium that goes down the drain, select the return of premium option which will give you all your money back.
If you want to talk to a licensed agent and get approved for insurance coverage to protect your family and your mortgage, give us a call today or fill out our quote form and we will be in touch.
Wilfred & Martha Dube
We are living in Arizona and am looking for a senior low price mortgage home Term Life Insurance. To also have it explained to us. Thank you
Hi Dube family, we will reach out and email you shortly.
Age 76 and interested in mortgage protection insurance for a period of 5 years.
Hi Sheila, we sent you an email with more info!
Looking into helping my uncle pay for a mortgage term life insurance. To ensure the mortgage is paid off if anything happens to him while my mother still lives there.
Is this something he needs to apply for and I pay the premium, or can I apply for him?
Hi Teresa, we sent you an email. In short, you can apply for him but he will need to be available at some point as well. Thanks for reaching out.