Protecting Family Payments Through Mortgage Protection Insurance

​The Covid-19 pandemic has placed an end not only to the lives of many but also to businesses and employment. Liabilities such as loans and mortgages continue to rise despite the halt in economic activities. The death of a loved one, especially the breadwinner who pays the bills, makes the situation worse. Obtaining mortgage protection insurance offers help to insured people in times of crisis like this. 

1. Mortgage Protection Insurance Defined
   Mortgage protection insurance is an indemnity that guarantees to protect the insured person’s family if his or her time of death comes. Instead of the family being the beneficiaries, the death benefit goes straight to mortgage lenders to keep the family from paying a burdensome debt.
   
   
2. Term Length of Mortgage Protection Insurance
   Its term life is adequately flexible; hence, the insured person may choose term lengths in either five-year or ten-year intervals. Despite this fact, mortgage protection insurance is usually fastened to the mortgage span itself. In other insurance companies, the insured person’s age limits the term length; they give a particular term length given a specified period. 
   
   
3. Advantages of Obtaining Mortgage Protection Insurance
   Not having enough money to cover the mortgage balance is not a problem since mortgage protection insurance is tied to the mortgage balance. The cash invested goes straight to it. If the insured person dies, the insurance company will continue making monthly payments until the death benefit is fully consumed. Also, it saves policyholders from underwriting processes, which result in higher premiums.
   
   
4. Disadvantages of Getting Mortgage Protection Insurance
   Unfortunately, mortgage protection insurance has a narrow scope. It allows the policyholder to meet its mortgage liabilities while leaving other debts behind. Moreover, the decreasing amount of death benefit limits flexibility to pay other debts since mortgage protection insurance and the mortgage itself are tied together.

Conclusion
Paying financial obligations is hard, especially during an economic crisis, but it is much harder if the breadwinner dies. Obtaining mortgage protection insurance reduces this hardship, and lessens loved one’s burden in paying the mortgage. Despite the disadvantages, it could still protect family payments.

At UG Brokerage Insurance Inc., we put our clients first by offering them policies that they can afford. Having insurance is a necessity nowadays, and we're here to help you out. Learn more about our products and services by calling our agency at (718) 848-7777. You can also request a free quote by CLICKING HERE.