Mortgage Protection Insurance
So, you just purchased your home and you’ve designed and furnished it to your liking thus far. Prior to buying in the area you were driving through the neighborhood and you noticed a couple of things that stood out to you. In these well-established neighborhoods with nicely manicured yards you see signage in windows and yards displaying “Monitored by XYZ Alarm Co.” or “Yard maintained by ABC Fertilizing”. These signs are easily displayed in subdivisions and especially where new homes are being constructed. You get inundated with all types of solicitations and advertisements and even the vacuum salesmen guys trolling around the neighborhood to get you to purchase yet, another widget and gadget all in the name of protecting your investment. You’ve secured a contract or agreement with an alarm company & yard maintenance company. You may even have to purchase flood insurance depending on where your home is situated. You are required in most cases to have Homeowners Insurance for your PROPERTY. Oh! and let’s not forget the Home Warranty coverage for protecting your plumbing, AC Unit, toaster water heater and other appliances in the household.
You can see the picture that is being painted here. Have you considered the possibilities of either homeowner or even the breadwinner succumbing to an illness, accident or even death? I know those other essentials may be just as important but is it even worth it when yet you had not thought about making sure either surviving spouse and/or significant other was covered. Have you not taken into account of the “What if’s?” Will you be able to maintain the standard of living to continue making the mortgage payments and making sure to protect the contents of the house?
Well you may need to consider Mortgage Protection Insurance. What is it? In its purest form, it is Life Insurance. Mortgage protection Insurance pays a death benefit to a named beneficiary. In some rare cases, the insured would have the creditor (mortgage holder) be named as the beneficiary. Now you can name your own beneficiary to receive the proceeds. The death benefit could be used to pay off or pay down the mortgage balance. It provides the family with enough money to fulfill other obligations, protects against the loss of income if you should die too soon and help secure the family’s future if you are no longer with them.
There are a couple of different policies to consider. A term and permanent or (whole life) policy. The term is designed for a specified period say 10-15 or 20 years and even some cases a with a return of premium rider. For example, say you outlive the policy over a 20 year period then you are entitled to a refund of all of your premiums paid…TAX FREE!. A permanent policy is in force for as long as you pay the premiums. These types of policies can be structured to meet your needs in several ways. You have optional riders for living benefits such as critical illness, injury, chronic or terminal. A Permanent policy properly structured could be used to build cash for the future as well as guaranteed income for life. The choice is yours.
At Ron L. Reed and Associates, our mission is simple, “To be Clear, Concise and Conversational Our values are People, Respect, Opportunity, Passion, Excellence and Loyalty.” Give us a call or get an instant life insurance quote by filling out the form to the right.