Sabtu, 18 Agustus 2012

Death or Disability: Are You Covered?

If you have a mortgage, you've probably received multiple offers for mortgage protection insurance. They all typically offer the same basic coverage: paying off your mortgage if you lose your job, become disabled, or die. Would you benefit from mortgage protection insurance? Or is it another way for the mortgage company to take extra money out of your wallet each month while protecting its own investment when you die? The answer to this question really depends on your health, your financial situation, and what you want to happen with your finances when you die.

Mortgage protection insurance, simply put, is insurance that pays your mortgage if a certain event, such as death or disability, occurs. The cost of this insurance depends on several factors, including the amount of your mortgage, your age, and your health. If you opt for coverage for job loss, your occupation and salary will also be considered. If you purchase mortgage protection insurance to pay off your mortgage when you die, the insurance company will send a check directly to the mortgage company to pay off the remaining balance. Payments will also go to your mortgage company if your policy pays out because of disability or job loss, but only for a certain time period. Disability or job-loss policies pay only the principal and interest on your mortgage.

One benefit of mortgage protection insurance is that it is usually issued on a "guaranteed acceptance" basis. This means almost everyone will be accepted, except for certain extreme cases. This is good for people that are otherwise uninsurable or insurable at a high cost due to health issues or high risk factors.

Mortgage protection insurance has become more important in recent years. Job security has become uncertain in current economic times. Many companies that are struggling financially are cutting staff, and unemployment is a major problem in many areas. People who have been in their positions for years have found themselves out of work. Should people who fall victim to today's economy lose their homes as well? The largest debt most families incur is a mortgage. It's becoming more difficult for many homeowners to avoid foreclosure because the loss of an income can result in the loss of a home. The best way to prevent that from happening to you and your family is through mortgage protection insurance.

Your agent can give you the facts on how a term life insurance policy could be preferable to mortgage protection. A licensed life insurance agent can answer your questions and provide clear information on what the right term life insurance policy can mean to you and your family.

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