What is mortgage protection insurance? How is it different from PMI? Do you even need it? It’ll all be explained in under 5 minutes! CONTACT LINKS: WEBSITE: https://pioneerserviceinsurance.business.site FACEBOOK: https://facebook.com/insmadesimple EMAIL: [email protected] Please like, subscribe and share with others! Stock Footage Provided by: www.pexels.com TRANSCRIPT: We’ve been getting a lot of questions about mortgage protection insurance so we’ll be devoting an entire video series to the subject. So, appropriately, the first video will explain- what is mortgage protection insurance? What if any advantages are there to this kind of insurance? How does it work? And do you really need it? All this and more in five minutes or less. My name is Chadwick Washington and I’m the owner of Pioneer Service Insurance. Mortgage protection insurance is a type of term life insurance that is specifically designed to pay off your mortgage in the event of your death. It functions like a standard term life policy: You purchase a policy for a set period, make monthly payments, and if you pass away while the policy is in force, your chosen beneficiary receives funds to pay off your mortgage. This coverage ensures that your family could stay in their home if you were no longer able to contribute to mortgage payments. What mortgage protection insurance is NOT, is PMI insurance. This is the insurance you are required to buy at the time of getting your mortgage, unless you’re able to put down more than 20% of the home price at purchase. PMI is designed to protect the bank. If something happens to you and you are no longer able to make the mortgage payments, PMI does nothing to protect you. Your home will likely go into foreclosure, and if the sale doesn’t cover the cost of the mortgage, PMI provides the difference to the lender. With that in mind, people who purchase mortgage protection insurance are people who are concerned about protecting what is often their most valuable asset. It ensures your loved ones never have to deal with the fear of losing their home, and it provides a measure of financial security if the unthinkable happens. If you’re wondering if you need mortgage protection insurance, consider a few sobering but important questions: What would happen to my loved ones if I were to die prematurely, become disabled or critically ill, and my income suddenly disappeared? If you have such significant assets that your family would not miss a beat-or a mortgage payment- then you don’t need mortgage protection insurance. However, for a majority of families, such a traumatic event would be financially catastrophic and the foreclosure of the home would instantly become a very real possibility. If you’re included in that majority, you can achieve peace of mind today with mortgage protection insurance. How does it work? Mortgage protection insurance functions much like other life insurance policies: You pay premiums to the insurance company to purchase a specific amount of mortgage protection coverage. Those premiums are based on your attained age and your health, as well as the value of your home and the payoff amount. If you die while the policy is in force, the insurance company provides funds to pay off your mortgage. So in conclusion, let’s review some of the advantages of mortgage protection insurance: It provides a death benefit to pay off your mortgage in the event of your death. There are options that will pay your mortgage if you become disabled or in the event of a critical illness. It provides benefits from a life insurance policy with generally affordable premiums. And it achieves peace of mind for your home and your family. Are you interested in if you could be approved or how much it would cost you to be protected? Just reach out by email, message me on Facebook or just head to our website and click on the “get quote” button, you’ll find links to all these in the description. We can shop over 30 top-rated insurance carriers to help you find the plan that will fit your budget. Thanks for watching and we’ll see you next time!

2 Replies to “What is Mortgage Protection Insurance ?”

    1. Great Question! There are several legitimate reasons a company may not pay a life insurance claim. A few big ones are suicide within the first two years of the policy, detected fraud on the application within the first 1-2 years (incontestability period), death due to risky/and or illegal activity and finally death while permanently living outside of the U.S. (or wherever your home country is at the time the policy was issued). It’s always important to go over the fine print and this is an excellent topic to ask your agent about. Hope that was informative!

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