What is Arizona Mortgage Protection?
Arizona Mortgage Protection is basically a term life insurance policy. It’s is built to cover your mortgage responsibilities and it’s going to pay off your mortgage in full. Whether you have a $200,000 or an $800,000 mortgage, this type of policy with pay upon death.
What are Living Benefits?
However, certain circumstances like terminal illnesses or chronic illnesses will qualify for partial or full payment in advance of your death. These are called Living Benefits. Now, this is not some kind of mortgage magic and it’s not going to be directly attached to the mortgage. So it’s going to just be attached to you, your spouse or loved ones. The Arizona Mortgage Protection policy will send a lump sum upon death or upon a need for those living benefits. It’s up to the beneficiary as to what they’re going to do with the money. Ninety-nine percent of the time it is used to pay off the mortgage.
Why Do I need more Life Insurance?
You may ask. Why would I also need this? It’s just more life insurance. The reason you need Arizona Mortgage Protection is to make certain the mortgage is going to be taken care of. For example, when one of the spouses or loved one passes away, the remaining spouse oftentimes cannot afford to keep the house. The Arizona Mortgage Protection life insurance takes care of those worries. You can be comforted by the knowledge that when you are gone your loved one will be able to stay in the house because your mortgage will be paid. There will be no foreclosure or probate related issues if you have mortgage protection.
It’s worth the monthly payment to have a peace of mind. That way you don’t have to worry about things like foreclosure, which is very common. That’s pretty much solved by taking care of this with a policy just for your mortgage protection.
What does a Level type of policy mean?
Protect With Insurance prefers to write a Level type of policy. That means that the premium does not go up. It will not go down. It is a term life insurance policy that will remain the same today as it will be on the day that it expires. That’s terrific! If you took out a $325,000 mortgage protection policy and your loved one passes away, they will receive $325,000 for the original mortgage amount. After 25 years a substantial amount of the $325,000 will probably be paid off. However, they will receive the whole $325,000. So they can pay off the mortgage and now they’ve got a $50,000 or maybe even $200,000 additional funds that go into the bank.
An Arizona Mortgage Protection Level policy is a wonderful thing because it ensures that you’re going to get that mortgage paid off and then your loved ones are going to get some extra money to spare, especially in their time of mourning.
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