Mortgage Insurance Options that Help Protect You and Your Family

If you are like most individuals who purchase a home, mortgage payments are one of your most significant monthly household expenditures. Keeping up with these monthly payments is typically feasible when life is going smoothly, but what happens if you become critically ill, disabled, or worse? How long could you continue to make ends meet if you were unable to work? You may not want to think about extreme situations, but will your spouse be able to cover your mortgage if you pass away? While these questions are not easy to consider, they are very important when you purchase a home and carry a mortgage.?

While critical health challenges or a fatal accident are largely beyond your control, there are steps you can take as a homeowner to protect yourself, your family, and your investments. These proactive measures include arranging adequate mortgage insurance that will cover you and your family if you cannot generate an income due to death, critical illness, or disability.

What is Mortgage Life Insurance??

Mortgage life insurance pays your mortgage in whole or in part if you die. Having this coverage in place allows your family to stay in the home you purchased even when you are gone. This type of insurance is critical if your mortgage and your home are solely in your name and if your mortgage is larger.?

Mortgage life insurance is usually optional and arranged when you finalize or renew your mortgage. The application process is typically straightforward and convenient and is not based on your personal health history. Mortgage life insurance is also group insurance, meaning that premiums are generally on the lower end.?

This coverage can provide you with greater peace of mind that you will not leave your loved ones with significant debt upon your passing.?

What is the Difference Between Mortgage Life Insurance and Personal Life Insurance?????

Personal life insurance is different from mortgage insurance because funds from personal life insurance policies can cover costs unrelated to your mortgage.?

Personal life insurance claims will be paid directly to your family, while mortgage life insurance claims will only settle debts with your mortgage lender. Therefore, if you do not have mortgage life insurance in addition to personal life insurance, funds from a personal life insurance policy may need to be used by your family to cover the mortgage. This scenario could leave your family with less money to use for other living expenses, your funeral arrangements, and investments in your children's future.?

What is Mortgage Critical Illness Insurance??

Mortgage critical illness coverage is another mortgage insurance option that can ease your mind about your future financial security. When mortgage critical illness is in place, you will be insured if you are diagnosed with a critical illness covered under your policy.?

Mortgage critical illness insurance will provide you with funds to pay off some or all the outstanding balance on your mortgage. Therefore, you can eliminate a large monthly cost, giving you greater financial flexibility to pay for your increased healthcare needs such as home modifications, private care, medical equipment, and physical therapy.?

What is Mortgage Disability Insurance?

Mortgage disability insurance helps protect you and your family from financial hardship if you cannot work for more than 30 days due to a disability. With mortgage disability coverage, your mortgage payment will be covered up to the percentage you select when arranging your insurance plan. This coverage typically includes your mortgage principal and interest, as well as any property tax deposits and mortgage life insurance premiums.?

Like mortgage critical illness insurance, mortgage disability insurance can help make living with a disability more manageable, particularly if you require significant modifications to your home, or ongoing private care and therapies.??

Is Mortgage Insurance Right for You??

Securing mortgage life, critical illness, and disability insurance are personal choices based on your unique situation, but they can provide you with increased peace of mind and the ability to manage unforeseen life events with a lesser impact on your financial stability. In addition, securing mortgage insurance coverage can help reduce the need to dip into retirement, education, or emergency savings that you and your family have tucked away for the future.???

Contact Me Today

As a mortgage specialist with a solid background in finance, I am here to provide you with reliable advice on all your mortgage-related questions. Please feel free to connect with me on LinkedIn, reach out by email at [email protected], or call me directly at 514-983-7509.