Things To Consider When Buying Mortgage Protection

​Mortgage protection insurance pays for your loan if you suddenly pass away. It is a type of life insurance. Mortgage insurance can spare your family from the hardship of paying the mortgage with one income after your passing.

How The Insurance Policy Works
Mortgage protection insurance is similar to term life insurance. Your mortgage is covered as you pay a certain amount for the duration of the insurance policy. But after the term ends, the coverage also ends. Most insurance companies will issue policies that are the same duration as the term of the mortgage you are protecting.

Who pays for your mortgage?
If you passed away within the coverage period, the insurance company would pay for the loan that you will leave behind. Your loved ones will not receive money from the policy, but the policy will pay for your loan. So, if you have a housing loan, they will not have to worry about housing payments.

Advantages And Disadvantages Of Mortgage Protection Insurance
These are the benefits of mortgage protection insurance. Keep these in mind if you want to obtain the policy.

1. You will have peace of mind knowing that your mortgage payments will be taken care of and won’t trouble your family.
2. It is more affordable than life insurance. Age and health are factors in not getting cheap insurance. Mortgage protection insurance may be a better alternative.
3. Life insurance companies require applicants to have medical exams. If the results of your exams are bad, they might deny you. Mortgage protection policies do not require this.

These are the disadvantages of mortgage protection insurance. Keep this in mind because you will be spending money paying for the premium.

1. Mortgage protection insurance pays for your covered loan after you pass away. But your loved ones won’t receive any other substantial benefits.
2. The amount of your payment remains constant over the policy term. But the value of death benefits decreases in the long run to match the outstanding balance of your loan.
3. This policy covers your mortgage, but it won’t cover death and burial expenses.

At UG Insurance Brokerage 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.