What Is “Mortgage Protection Insurance”?

This is mortgage protection insurance. I’m Chad McMahan with protect with insurance. And this is another kind of video shacks a video resource for anyone that wants information to better understand all the different sections of life insurance. It can be very complex to understand life insurance and mortgage protection.

Insurance is just another small element. Of life insurance and what’s out there. So what is mortgage protection insurance? First of all, it goes by a lot of names, mortgage protection, term, mortgage insurance, term, mortgage protection, mortgage protection, homeowners insurance, by the way, very different from home or homeowners insurance.

there are a lot of these, these different things that mean the same thing. Mortgage protection. Insurance is more commonly known as simply mortgage protection. That’s the most common term you’re going to hear for that. Now. Mortgage protection insurance is a term structured life insurance policy.

That’s going to completely pay off your mortgage upon your death. And in not all, but in many cases, it’s also going to completely pay off the mortgage. If you’re diagnosed with one of many different health issues, here’s some examples of common ones, terminal, terminal, health issues,  chronic, a chronic diagnosis.

Critical. We get a critical diagnosis.  those are very, very common.  and,  an example of chronic,  could be a chronic bronchitis, chronic CLPD. There are a lot of things that can fall within that category. Terminal is that’s the nasty one. It’s, it’s less common. That’s going to be,  let’s say you get a diagnosis of,  You know, end stage renal disease or,  some various type of cancer out there.

And the doctor says, okay, you’ve got about 12 months left to live or on the outside, maybe 24 months to live. A lot of those things will especially terminal, but the other things very commonly will pay off the entire mortgage. If you are with an, a rated solid mortgage protection program. Now there are programs out there that have no living benefits whatsoever and that’s okay too.

They cost less. There’s a time and a place for mortgage protection, mortgage protection insurance. That has living benefits. There’s a time and a place to save money, but still get a program and have no living benefits. So it can cut the cost about 20%, sometimes 30% to have no living benefits whatsoever, but to still have a program in place that completely pays off the mortgage upon death.

Now earlier I mentioned terms. So these are terms, structured life insurance policies that pay off the mortgage. So term is going to be 10, 15, 20, 25 or 30 years in length, depending upon three factors. One. Yeah. And,  your budget, because the longer the term, the more it’s going to cost 30 year term is going to cost more than a 10 year term to the length of the mortgage.

You may be silly to get a 30 year mortgage protection insurance policy when you have 10 years left in your mortgage. So that’s the other, the other elements on that. And then the third thing is going to be your age. So the older you are, the shorter, the term truly needs to be because the insurance company, providing this policy for you, they are going to have a maximum term length that they’re willing.

To ensure you for based on your age. So again, the older you are, the shorter the term. So if you are, let’s say under the age of 50, then you can go all the way up to 30 years, but let’s say you are 80, 75, 70. You’re probably going to be looking at a 10 year, 15 year maximum term. Well, I say 15 year maximum.

There’s always an exception to every rule. If you are in perfect health, no prescription medicines. No medical conditions. Non-smoker your height and your weight are nearly optimal.  no issues, no flags, no major surgeries.  no recent, anything never had cancer, never had, you know, any of these things.

Then you could go with a fully underwritten mortgage protection insurance policy,  where a pyramid comes out, they check your height and weight. They draw your blood. They. Run you through the ringer takes it. It’s not that big of a deal. It takes about half an hour. They come to your home and they do this.

So if everything is perfect and you’re able to do that, then they usually will extend that term policy. Another five to 10 years on the maximum. And the price usually does come down, but you have to be in exceptional health. To qualify for those programs. So don’t fret. If you’re not in perfect health,  you can typically still get mortgage protection.

However, you should know that mortgage protection insurance is a lot harder to qualify for then whole life insurance. And it is a completely different animal entirely. If you’re looking at graded or guaranteed issue, whole life comparing that to something like mortgage protection. So typically this is the question I commonly get.

What is my health need to be at Chad in order to,  in order for me to qualify for mortgage protection insurance. So here’s what you want to be looking at three or less prescription medicines.  your height and weight does not need to be perfect, but it can’t be terrible. Now before you are hard on yourself and saying, well, I’m short and super overweight or I’m tall, but I’m, you know, over 300 pounds or whatever it may be.

Don’t be hard on yourself because nowadays a lot of people are overweight. It is just the new normal.  I was over 300 pounds. I was able to lose 70, you know, I worked my tail off, but a lot of people are not that fortunate. And there are medical reasons why some people can’t lose the weight and can’t do it.

So,  Just know that before you beat yourself up on that, give us a call because there are a lot of programs that will do mortgage protection. I was able to qualify really nice. Couple where,  the wife was five, four, two 45. The husband was five 11. And close to 300 pounds and believe it or not, I was able to get them both into mortgage, but they both had diabetes,  no insulin, which is a good thing.

They both had diabetes. I was able to get them into mortgage protection policies. It took some work, but it’s able to get it done.  so reach out to us if you’re concerned. So in a nutshell, that is mortgage protection insurance. I like to keep this videos as short and sweet as possible. Please reach out to us.

If you want to see other content covered, other questions answered so you can email us at hello@protectwithinsurance.com. You can call us at (928) 323-0933. We’re always happy to help love connecting with new people. Look forward to hearing from you. All right, stay safe out there.

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Chad McMahan

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