What is Arizona Mortgage Protection?

Mortgage Protection helps save your loved ones from foreclosure

Arizona mortgage protection typically is a term life insurance policy. It’s going to be something that is built from the ground up to cover the mortgage responsibilities. Now typically it’s going to be something that is going to pay off the mortgage in full.

So if you have a 200,000 if you have a 400,000 if you have an $800,000 mortgage, it’s going to pay that off. Upon death or upon, and this depends upon the insurance company that you ultimately go with. And I’m not talking about the agency or the agent, but the actual insurance company, cause they’re all different.

But sometimes things like terminal illnesses, critical illnesses, chronic illnesses, things like that, and they’re going to send part or all of the full payoff to take care of that. Now, this is not some kind of mortgage magic or anything like that. It’s just. Gonna come in the form of a lump s So I want this to be understood.

I want this to be clear. It’s not going to be directly attached to the mortgage. It is life insurance. So it’s going to just be attached to you, to your spouse, et cetera. And they’re gonna just send a lump sum upon death or upon those living benefits I just mentioned. So when that money comes in, it’s up to, the beneficiary to do what they’re going to do with the money.

And, 99 out of a hundred. Times that’s used to pay off the mortgage. And so if it’s designed for that, that’s, that’s what it’s going to be used for. Now you may say, well, I already have life insurance. Why would I also need this? It’s just more life insurance, and that’s a good point. The reason why is that you know that the mortgage is going to be taken care of in most cases.

let’s, let’s say you’ve got a husband and a wife, the husband or the wife. One of them passes away, the remaining spouse cannot afford to keep the house, cannot afford to stay there. And so, you know, Arizona mortgage protection, otherwise known an Arizona mortgage life insurance, you know, it’s something that takes care of that so yet hurts a little now to have a monthly payment, but you know that when you go or when your spouse goes that it’s covered and that mortgage is going to be paid off.

So that’s why. That way you don’t have to worry about things like foreclosure, which is very common. you know, probate related issues, all of that. That’s pretty much solved by taking care of this with a policy just for your mortgage protection. So it’s a big deal. Now, the other thing that I understand is that in most cases, not in all cases, but certainly in most of them, that I write for my clients, they’re what are called level policies. Now, level policy is something that will not go up. It will not go down. It is a term life insurance policy that is the same today as it will be on the day that it expires, and that’s a whole nother topic on the expiration. But what that means is that, let’s say it’s a 325.

$5,000 policy, cause that’s the amount of the mortgage in 25 years. your husband passes away, whatever it may be, you’re going to receive $325,000 so the mortgage is going to be a lot lower than that in 25 years, which means you pay off the mortgage and now you’ve got a hundred and. 50,000 or maybe 200,000 or maybe even a little bit more that goes into the bank.

Okay. So it’s extra protection that way. The level policy is a wonderful thing because it ensures that you’re going to get that mortgage paid off and then you’re going to have some extra. Money to spare what you’re going to need because in a time of mourning, it is tough. Everything is harder. So I hope this has been helpful.

I could talk for hours on the subject, but I hope that you just reach out to me directly and click the button below the link below. I’ll be happy to provide a free consultation for you, answer your questions. I’m happy to help you over the phone or face to face and love to meet you.



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Chad McMahan

Chad McMahan

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