Mortgage Protection Life Insurance is insurance policy that you own, that pays you, your spouse or beneficiary if you ever need it. Traditionally, Mortgage Protection Insurance overlays the term of your mortgage. If your mortgage is 20 years consider a 20 year term policy. If it's 30 years consider 30. There are also other advantages because don't forget this type of policy is uniquely packaged with valuable features: 1) It comes with Living Benefits so it pays up to 95% of the face value of the insurance if your heart attack, stroke or cancer diagnosis DOES NOT KILL YOU. ex: $300,000 face value policy x 95% = $285,000 paid to you in tax-free cash. Your bank can't touch it.
Please read on because this is important to you. Most of the home buying, mortgage borrowing public doesn't understand this and unfortunately you cannot go to the people you should trust like your Mortgage Loan Broker or Bank Loan Officer because of they work for the company that loaned you the money so they protect themselves with insurance. All Private Mortgage Insurance PMI does is reimburse the bank for the loan you default on so the bank doesn't have to write the loss off and take a hit on their books. In case you didn't know, banks hate to lose money. Even small amounts so when you consider a mortgage loan of between 200,000 to $750,000 or more banks will do anything to prevent themselves from losing money. Bingo! There's a built-in conflict of interest.
consideringLet me explain how this happened. Then I will Demystify why Mortgage Protection Insurance is a good second step for your family.
Your first good step was to purchase your home. Personally, I'm so happy for you. It is a piece of the American Dream but more importantly it is YOUR DREAM and your family will THRIVE in your home.Your second good step, that you are considering, is to make sure you KEEP YOUR DREAM in your family no matter what TWISTS and TURNS your life will take. This also means protecting all your equity in your home because if you ever defaulted and the bank forecloses, you lose your equity. News flash to all the people who might tell you that life is predictable and you are young and strong and don't need life insurance (Please read my blogpost.) Life is a gift to cherish and enjoy. But Hold On: Much can, and most likely will, happen during your life and family's life in YOUR HOME/homes if you are fortunate enough to have more than one during the 30-50 years that you will live in them. When you buy a home and go through closing you sign papers for the title/deed to take possession and papers to close on your mortgage loan or an equity loan. These papers are legal documents that by law must be filed with the County County Clerk's Office in the county of your residence. If you live in Bergen County papers are filed in Hackensack If you live in Passaic County then your documents are filed in Paterson.
As public records, this information is available for sale to various organizations. Of all the letters that are mailed, 1-1.5% of home owners fill out the attavhed letter and mail it back. You may have done this or are considering doing it if you are reading this. Since several companies buy these lists and mail these letters you mail think its a duplicate and fill out more than one. If you mail more than one letter you will get more than one call and most of them are nuisances.
At my company, the Buckley Agency: Insurance Demystified, if you invite us over or meet by Zoom, will speak plainly to you in language you understand, free of insurance speak, to give you the accurate, timely information, including pricing on how to protect YOUR DREAM.
We come at your invitation and we leave at your request unless we finish sooner.