Hello, this is Chad McMahan with Protect with Insurance.
Does mortgage protection pay for unemployment? Now, the short version is a short answer is typically, typically no. Typically, mortgage protection does not pay for unemployment. There are options out there. There are policies out there. If this is what you’re looking for, then I suggest that you look at term life insurance structured policies.
Tell your agent upfront, let them know that that is what’s most important to you. And some options flowed out there. But typically, your mortgage protection, it’s going to have a few things built into it. One is you need a really good death benefit. A policy that’s going to pay out in full tax-free right away if there’s any death. The second thing is you’re going to want living benefits built-in. This is where we could get into unemployment territory.
But usually, unemployment-related benefits are going to be waived, premiums for six months on unemployment, things like that. That’s a commonly built-in benefit if it’s a quality program through a highly rated company. That’s just something where you don’t have to make your payments for six months. They waive those. You don’t owe them later. Just take the pressure off during unemployment at that expense that costs you. Now, there are income protection writers that you can add to mortgage protection policies.
It can be a little bit pricey, but it can be if you are unemployed where you receive X dollars per month for some time. So, again, these policies can be a little bit expensive, but if you want to protect if you want to insulate yourselves from that scenario from being unemployed and not having an income come in, you can do that. So typically, you can have anywhere from a thousand dollars a month to five thousand dollars a month.
That comes in potentially more if you’re looking at larger policies, just. No, again, and they get quite expensive for this sort of thing. But that is an option. Very few people take advantage of those income protection writers because of the cost. And so the unemployment writer that’s built in to just waved insurance payments for six months, that is something that’s not going to cost you an arm and a leg. And it’s going to be as part of a program that has amazing living benefits and the best death benefit you can get for your mortgage amount.
So I would recommend you start there, but please let your agent know if you reach out to us. Let us know right away if that’s crucially important to you. And we’ll make sure that we pull income protection so that you can get a price comparison on that. But typically, that’s not something that’s even shown to clients and you need to ask for it. So I hope this has been helpful. And another mortgage protection episode. Let us know if there’s anything else you’d like to see and stay safe out there.