Mortgage Protection

Guide to Mortgage Protection

You have recently purchased a house. Are going to purchase a house soon, or just forgot and now realize you need mortgage protection. Whatever the reason, you have made the right decision.

Let’s step back a bit. What is Mortgage protection? Mortgage protection is a Life Insurance Product that pays your mortgage in case the unthinkable happens; death. It pays the mortgage and whatever bills necessary for your family to continue without the hardship that may come without its protection.

Mortgage Protection usually comes in the form of a Term Life Insurance product. Why?

Term Life products are paid to your beneficiary. Not the bank.

It allows the survivor to decide if they want a lump sum to pay off mortgage, withdrawals to make monthly payments towards the mortgage.

Invest and pay mortgage with dividends.

Nontaxable payments. (Contact CPA for Guidance)

It’s less expensive.

Does not decrease in value over time.

It transfers from Job to Job.

These are all good reasons to purchase Term Insurance.

Dave Ramsey says, “Buy term insurance and invest the rest.” and “Only buy what you need.” Good advice Dave. (Dave from The Dave Ramsey Show)

Things you want to make sure are included.

Level Premium certain. This is very important. As your mortgage decreases in cost you do not want your insurance to decrease.What if you refinance?That would not be right.You did the right thing but still in the end you are not covered.

Make sure your insurance moves with you.If you sell the house and buy a new one, it is very important that the policy transfer with you.No need to buy new insurance.

Coverage if you are disabled. Sometimes this is a rider (Usually Whole Life) to the policy. BUY IT.

Coverage if you lose your job. This is new and not being offered everywhere. If your company offers it as a rider BUY IT. People today more than ever change jobs. Sometimes not willingly. Companies no longer hold on to their employees. Layoffs are becoming more and more prevalent.

Make sure you have the option to renew at the end of policy. This is very important because if you are sick you may want to keep policy a little longer.Even if it cost more.

Everyone should have a Term Policy. Do not wait. Buying this policy is the foundation to a successful financial future and it could cost as low as $10 per month.

How to save money.

Always contact an independent agent. He/she will have access to many insurance carriers. The independent agent will make it in his/her best interest to find you the lowest rate at the best terms possible. This is not the case with other agents who only represent a single company. They often push a single product and over charge their clients. Selling their clients on the Bundle. Why pay $25 when you can pay $10. Save $2 when you bundle. It just doesn’t make sense.

Do not buy more than you need. Why buy 5 Million Dollar in coverage when it’s not needed and may never be received. Remember Term Life insurance only last as long as the policy. There is no cash value. It there only if needed. Not to make you rich.

One last thing. Term can be purchased at highly needed times. Let’s say a child is born and you want to make sure the family would have a little extra money for college expenses. So it is possible to buy a 10 year term for the need. Stack a second policy to cover that specific event. It is flexible.

Wow …. That is a lot to think about. You probably like most smart people want to have a professional contact you. If you fill out the information below a professional will contact you within 24 hours. Almost everything can be completed on the phone. However some agents are required to meet with you for signatures or follow up documentation.

Don’t delay. Hope this helped?

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