What is Mortgage Payment Protection Insurance?
Mortgage payment protection insurance pays mortgage payments for a short term when the insured person is not in a position to make payments due to illness, involuntary unemployment, or injuries caused by accident.
It is a form of mortgage life insurance.
Mortgage life insurance can be considered as a decreasing form of term insurance.
As the policy gets along, the payments remain the same, but the coverage decreases since the homeowner will be paying off the mortgage over time.
The problem is that until you get into your sixties the cost of insurance per thousand dollars should not increase swiftly enough to counterbalance the fact that you are theoretically paying your mortgage down.
Not to mention the fact that level term policies exist for about the same amount of money, and that term is a poor form of insurance in the first place.
Home owners can use regular life insurance by increasing the coverage amount so that in the event of a death of the bread earner, the family members can keep the house without worrying about making monthly payments.
But there are other specialized forms of insurance such as mortgage life insurance, which pays off the mortgage balance if the home owner dies.
Unlike life insurance, this type of insurance has fewer restrictions and such as lengthy medical exams.
Most of the major insurance companies offer mortgage life insurance.
Your financial adviser will be able to help you compare and shop for the best policy that fits your needs.
There are other types of coverage options you can choose depending on how deep you want to be insured.
Unemployment insurance provides you monthly income, generally for a short duration, until you find another job.
This will help you make mortgage payments and cover living expenses while you are unemployed and you will have the peace of mind knowing that you can pay your bills for a while in case you lose your job.
When choosing the insurance company, always go with the reputed ones.
Check the ratings with better business bureau and other review sites.
Contact your financial planner for a recommendation.
It is a form of mortgage life insurance.
Mortgage life insurance can be considered as a decreasing form of term insurance.
As the policy gets along, the payments remain the same, but the coverage decreases since the homeowner will be paying off the mortgage over time.
The problem is that until you get into your sixties the cost of insurance per thousand dollars should not increase swiftly enough to counterbalance the fact that you are theoretically paying your mortgage down.
Not to mention the fact that level term policies exist for about the same amount of money, and that term is a poor form of insurance in the first place.
Home owners can use regular life insurance by increasing the coverage amount so that in the event of a death of the bread earner, the family members can keep the house without worrying about making monthly payments.
But there are other specialized forms of insurance such as mortgage life insurance, which pays off the mortgage balance if the home owner dies.
Unlike life insurance, this type of insurance has fewer restrictions and such as lengthy medical exams.
Most of the major insurance companies offer mortgage life insurance.
Your financial adviser will be able to help you compare and shop for the best policy that fits your needs.
There are other types of coverage options you can choose depending on how deep you want to be insured.
Unemployment insurance provides you monthly income, generally for a short duration, until you find another job.
This will help you make mortgage payments and cover living expenses while you are unemployed and you will have the peace of mind knowing that you can pay your bills for a while in case you lose your job.
When choosing the insurance company, always go with the reputed ones.
Check the ratings with better business bureau and other review sites.
Contact your financial planner for a recommendation.