Mortgage Protection Life Insurance

Mortgage Protection or Term Life Insurance is a type of life insurance designed to pay off or cover your mortgage if you become sick, disabled, have a terminal illness, or pass away.

It provides peace of mind by ensuring that your family or dependents won’t lose their home due to an inability to make mortgage payments after your death.

How It Works

• Coverage Amount: The policy is usually designed to match your mortgage balance.
• Beneficiary: The primary beneficiary is the person(s) designated on the policy, meaning the payout goes directly to them to settle the remaining mortgage or anything else.
• Term Length: The policy term typically aligns with the length of your mortgage (e.g., 15, 20, or 30 years).

Key Features

1. Simplified Approval:
   • Some policies don’t require a medical exam, making them accessible to individuals with pre-existing health conditions.
   • Premiums are generally based on age, mortgage amount, and health status and does not increase during the term of the policy.
2. Premiums:
   • Premiums are fixed for the policy term period.
   • Payments are typically higher than term life insurance but offer the convenience of direct mortgage protection.
3. LIVING BENEFITS:
   • Disability: Covers mortgage payments if you become disabled.
     1. Designed to make certain you don’t lose your home in the event of a disability.
     2. Covers accidental and health related disabilities.
   • Chronic, Critical illness, or Terminal illness: Policy pays out while you are alive.
     1. Provides cash during a time of crisis such as a heart attack or cancer to help pay living expenses or health care.
     2. Provides cash to help with expenses if you are diagnosed with a terminal illness.
   • Unemployment: Provides temporary payment coverage if you lose your job.
   • Pays off mortgage in the event of death.
   • Protects your family and not the lending institution.
   • Benefit is level and does not decrease.
   • Premium is level and does not increase.

Benefits

• Guaranteed Mortgage Coverage: Ensures the home is paid off, removing financial burden from your family.
• No Usage Restrictions: Your family can decide to either cover the mortgage or buy time to sell the property, protecting the equity.
• Simplified Underwriting: Easy to qualify.
• CASH BACK OPTION: There are options to receive cash back or return on premium (ROP) on the policy.
  • Example: If you make $100 a month payment for $250,000 coverage for 30 years = $100 x 12 months x 30 years = $36,000 check in 30 years Tax Free.
  • Excellent option to pay off your mortgage early.

Limitations

• No Cash Value: Mortgage Protection or term life insurance doesn’t build cash value unlike a whole life policy.

Fill out a Quote Form and our agents will find which option works best for you and your family:

• Pay off mortgage early with ROP – Cash back
• Pay off entire mortgage
• Pay off half your mortgage to refinance
• 18 Month mortgage payment coverage (EQUITY PROTECTION)