Are you curious about what the skinny is on mortgage protection insurance? Well, this is Chad with Protect with insurance and I’ll give you the four one one on this mortgage protection insurance, it’s a fancy way of saying a life insurance policy that is built to pay off that mortgage and by built, to do that, all I mean is that it’s going to be sufficient in coverage size, let’s say it’s a two hundred twenty thousand dollar mortgage, then it’ll be a two hundred twenty thousand dollar life insurance policy.
If you’re married, then you’re probably going to want to get one on you, as well as your spouse. It’ll be two policies, one per person it’s going to be a full coverage policy that’s going to pay off that mortgage and if you’re under the age of 71 and if the price is too high for a full coverage mortgage protection plan, you may opt for something like an accidental policy that’s going to be for the mortgage amount or possibly a little bit higher.
So that’s it. Mortgage protection insurance it’s not the same thing; this is an important bit. Here, it’s not the same thing as a mortgage Insurance, it’s part of the piti when you have a mortgage, so it’s not the same thing at all, the short version on that is mortgage insurance that’s built into your piti, that’s a small life insurance policy that only benefits the lender and it is something that helps them to hedge their risk that they’ve calculated, what their cost is every time they have a borrower that dies, they’ve calculated roughly a cost of what this means to them because it does cost them money when this kind of thing happens because then they see the foreclosure process which can get very expensive for them, so that is a small policy, they require you to pay as part of your piti small doesn’t pay off the mortgage and if it does pay, it does not reduce what you owe, it’s important that you understand that a lot of people feel that oh, well, it’s built in the piti, and there’s mortgage insurance if I die, it’s it’s paid off, that is not the way that works at all, there is ZERO benefit to you aside from the fact that it’s a requirement for you to get the loan and the place, so please understand that if you have any other questions, click the button below if I can do a consultation for you, and if you want me to follow up, feel free to leave comments, stating if you want more clarification on this, I’ll be happy to provide it.
Any other questions that you may have, I’ll be so glad to answer them, just reach out to me and I’ll be happy to help you. Again, this is Chad with protect with insurance. Take Care.
If you are located in the Cottonwood, Sedona, Flagstaff or Prescott area and are looking for more information on affordable Life Insurance please don’t hesitate to contact us. Use the links below or call us directly at: (928) 323-0933.