The Five-Minute Guide To Mortgage Protection Insurance

If you can spend minutes, even hours, mindlessly on social media, you might as well try to learn something new. Preferably, go for something that can help you in the long run, such as insurance. In minutes, you can find out more about mortgage protection insurance than your ex-friend’s neighbor’s cousin.
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Here’s a five-minute guide to mortgage protection insurance:

What Is It For?
Typically, lenders offer this insurance when people borrow money to purchase a house. The premiums are then rolled into their loans. Also referred to as mortgage life insurance, the mortgage protection insurance pays for the mortgage debts if the borrower dies. 

What Are the Pros and Cons?
Having mortgage protection insurance can give you the following advantages: 

• You will have peace of mind knowing that your family will not go homeless if you kick the bucket.
• Medical exams are not necessary. 
• You can add life insurance riders such as living benefits and premium returns. Living benefits let you access money from the policy’s death benefit in case of terminal disease diagnosis. Meanwhile, you will receive a premium return after a specific number of months through a premium return rider. 

On the other hand, you might experience these with mortgage protection insurance:

• Less affordable for people in good health
• Decreasing payouts since it matches your mortgage balance
• Asking for quotes can be a challenge

What Are Its Other Features?
Besides knowing what it is for, it is crucial to be aware of other features of mortgage life insurance.

When to Buy
You can get this type of insurance shortly after purchasing your house or when the lender offers you.

What About Premiums
Premiums remain level throughout your policy.

What Happens When the Mortgage Get Paid Off
The insurance will end as well once you pay off your mortgage. 

How is it Different from Term Life Insurance?
Mortgage protection insurance automatically chooses the mortgage lender as the beneficiary, settling your mortgage balance. Meanwhile, term life insurance lets you choose the beneficiary, such as your family. Your family also has the flexibility to spend the payout however they like. 

Conclusion
Learning about insurance in a few minutes can provide you information for significant life decisions. As a good example, mortgage protection insurance is an excellent option to secure your family’s home. 

At UG Insurance Brokerage Inc., we do our best in making sure that our clients are well-protected with affordable and comprehensive policies. We make sure to go the extra mile to help you with your needs. To learn more about how we can help you, please contact our agency at (718) 848-7777 or Click Here to request a free quote.