Nov 22

Mortgage Protection Insurance

mortage protection insurance

mortage protection insurance

If you have a mortgage, you’ve likely received mortgage protection insurance( offers. The offers may vary in nature, but for the most part, this insurance typically covers your mortgage payments in the event that you become disabled or lose your job. If you pass away, mortgage insurance will cover your payments and keep the burden off your loved ones. In both cases, checks will be cut directly to your mortgage lender. It is important to remember that this type of insurance will only cover the cost of your mortgage for a year or two, but it gives you and your loved ones time to make further arrangements. There may also be a waiting period before the payments start.

The current state of your health and finances will help you determine which insurance policy best suits your situation. Your age and the size of your mortgage will be considered when determining the cost of your policy. Even your occupation can come into play. You can purchase a rider with your policy that will cover your homeowner association fees in addition to the interest rate and principle on your mortgage if you lose your job or become disabled.

If health insurance companies consider you to be high-risk, you’ll likely still be approved for mortgage insurance. This is why this type of policy is appealing to those with chronic health issues. It also appeals to people with jobs in fields like construction, where it is difficult to obtain disability insurance.

Keep in mind that standard protection insurance for your mortgage is not the same as private mortgage insurance. If you put less than 20 percent of a down payment on your home, you’re required to take out a private mortgage insurance plan. This type of insurance covers your mortgage in the event of foreclosure.