What is Mortgage Protection Life Insurance
Mortgage protection is a term life insurance policy that is built from the ground up to pay off your mortgage. It cuts off a foreclosure at its knees by taking care of that responsibility. If you pass away before your mortgage is paid off, the insurance will cover it, sparing the loved ones you left behind from having to pay it or lose the house.
With mortgage life insurance in place, when you die, Your descendants will own your home free and clear and you can leave it to anyone you wish — wife, mother, sister, brother, etc. – anyone
There are a lot of ways you can structure mortgage life insurance. Knowing that when you pass away or when your husband or wife passes away, whoever is the owner and responsible for the mortgage, that the mortgage is going to be paid off, is a great relief.
In today’s uncertain world with the coronavirus killing so many people we never know when fate may take us. Having mortgage insurance in place is one great way to protect your family should you be stricken as well.
Your mortgage is taken care of. You have peace of mind. It’s owned free and clear after that point. So no more mortgage payments, it’s all squared away. That is what mortgage protection is all about!
Mortgage Protection Cash Bonus
Let’s say 10 years ago you took out a mortgage protection insurance policy to cover the full costs of a $300,000 mortgage at that time.
The time passes and you die. The mortgage is in not $300,000 anymore because you have been making mortgage payment over those ten years. You might only owe $250,000 or less. Your beneficiaries will still receive the $300,000 the original policy was written for.
That means they get all that extra money including the fully paid off home you left behind.
It’s hard to beat that.
Cash Bonus Not Taxed
Further, it is not taxed money. They don’t have to worry about having to pay taxes on the money they receive. They can spend it any way they wish. They can buy a car, or real estate. There are no restrictions. There are no a penalties, no rules on how that money must be spent. It’s completely flexible.
You can also name as many beneficiaries as you wish. And if you’ve named more than one beneficiary, let’s say you’ve split three beneficiaries, every beneficiary gets one third of the policy. They’re going to send three separate checks if that’s the case
And then there are the living benefits that can be written into the policy. Living benefits provide discounts for things like hearing aides and batteries, doctor visits, dental work, etc.
For those owning homes with mortgages there can be no better deal than mortgage life insurance. It’s a no brainer and we at Protect With Insurance are ready to help you get the best mortgage insurance protection at the best price possible. Call us now and set up an appointment and we will show you the way.