Mortgage Protection Insurance: The Cinch of a Phone Call That Keeps Your Family in the Home
“I don’t plan on dying anytime soon.”
I wish I had a dollar for every time I’ve heard that from young homeowners.
Other bangers include:
“Everyone in my family lives a long life.”
Or my personal favorite:
“I don’t think I need life insurance.”
I mean, I get it. As a young homeowner, you’re young and healthy.
You have your whole life ahead of you.
And if Earth is ever attacked by aliens, you and all the other homeowners will use your super invincibility to thwart the attack and save the day.
Of course I jest.
It’s easy to see life insurance as a waste of time when you hardly catch a common cold.
But here’s the thing.
The news is full of people who didn’t plan on dying that day.
Or ever.
It may sound dark, but the truth is, none of us know when our number’s up.
Isn’t it better to have and not need, than need and not have?
That’s where life insurance comes in. More specifically, mortgage protection life insurance, so you can protect your family against life’s unknowns.
If you’re still on the fence about the need for mortgage protection because you’re young and healthy, keep reading.
You’ll soon realize why your family wants this coverage, and just how easy it is to get.
Get mortgage protection life insurance for your family and ensure they always have a roof over their head. Get a quote today from a dedicated agent at Little Family Security.
What Is Mortgage Protection Insurance?
A specific type of life insurance
Pays off the mortgage or covers payments if the insured passes away
Some policies cover the full loan, others pay partial or make monthly payments
Mortgage protection insurance is a form of life insurance.
The death benefit goes to your family if something happens to you.
The coverage could pay off:
The whole loan. This would let your family own the home free and clear.
Half the loan to keep the premium payments affordable.
Or the policy could help your family make the mortgage payments for a few months or years.
Any of the three options will help your family immensely when your income is no longer contributing to the household.
At the end of the day, mortgage protection insurance ensures your family is allowed to keep the home in case the worst case scenario occurs.
You can protect your family with mortgage protection insurance by making a simple and easy phone call. Start the process today to see how much coverage you qualify for.
What Are Living Benefits?
Coverage for critical, chronic, or terminal illness, to give some examples
For instance: A $150,000 policy might pay $25,000 after a heart attack
Use the funds for medical bills, recovery, or mortgage payments
Many of the young homeowners I work with are surprised to learn about life insurance living benefits.
These are perks included with your policy that assist you - the insured - while you’re still alive.
Examples include built-in riders like critical, chronic and terminal illness coverage.
Not only is there a death benefit that goes to your family when you pass…
…but your policy may cover ailments like heart attacks, strokes, or even cancer!
If you are ever afflicted by an ailment covered by the policy, the life insurance carrier will release a portion of the death benefit early.
How much of the death benefit depends on the carrier and policy terms.
For example, a $150,000 mortgage protection insurance policy may come with critical illness that allows for $25,000 early release upon each instance of a heart attack.
That money can be used for medical bills, and to make ends meet until you return to work.
What’s a Cash-Back Rider?
Premiums returned if you outlive the policy term
Options range from 50% to 100% return
Think of it as a win-win: protection or a payday
Young and healthy homeowners can usually qualify for policies that include cash back riders.
Cash back means some or all of the premiums paid-in get returned to you at the end of the policy term (thirty-years, for example), provided you outlive the policy and don’t file any living benefit claims.
Some carriers offer 50% cash back, others 100% upon completion of the term.
That means you get half or all your money back if you never use the policy at all!
Is It Hard to Get?
Nope. Most applications take around 15 minutes
No medical exam required for most people
Most clients are approved on the spot
Buying a house is a gruelling process that is not for the faint of heart.
By the time you close on your home, you’ve submitted so many documents, met with your lender countless times, toured homes until your feet hurt, and signed on a loan large enough to give you a nosebleed.
The whole process leaves you exhausted, and you haven’t even moved your stuff into the house yet!
I’m sure the last thing you want to do is talk to a life insurance agent.
But here’s the reality: The entire process requires nothing more than a fifteen-minute phone call.
That’s it. It really is as simple as that.
What Does the Agent Ask?
Basic info: age, health, medications, lifestyle
It’s just like telling your realtor what kind of home you want
Be honest! Insurance carriers know more than you suspect
During this short phone call, the life insurance agent’s job is to gather enough information to find the best suited mortgage protection insurance policy.
Coverage is based primarily on age and health.
However, the agent may ask a range of questions which can include:
What is your birth date?
How tall are you?
How much do you weigh?
Are you a smoker?
What medications are you currently taking?
Have you been diagnosed with any illnesses or diseases in the past ten years?
The process is not far removed from house hunting, only much easier. Just as you told your realtor what you were looking for - how many bedrooms, bathrooms, stories, and other details that were important to you.
Finding the best life insurance policy is no different. A good life insurance agent can pair you with a policy that includes the death benefit, living benefits, and any other perks you desire.
This leaves you with a policy you and your family can feel good about.
Choose Your Options Wisely
A good agent will present several options based on the information you provided, and your life insurance goals.
The options may cover the whole loan, a portion, or the payments.
Each option will come with benefits like living benefits, accidental death (which typically pays double upon a fatal accident), and cash back.
Keep in mind that life insurance agents can only list options you qualify for.
Once you are given options, choose the one that provides adequate coverage to feel protected without stretching your budget.
Nothing is Set in Stone
Keep in mind that most carriers give you thirty days to change your mind regarding the amount of life insurance coverage.
Switching coverage amounts, draft dates, even beneficiaries can be done with ease within that thirty-day span.
Instant Approval in Most Cases
Once you’ve chosen the perfect option, the life insurance agent will take you through the electronic application.
Most carriers offer simplified issue life insurance coverage that allows for an e-application or e-app.
The agent will take you through each page of the e-app while asking the appropriate questions, such as:
What is your social security number (so the carrier can identify you and check your medical background)?
What is your address or email address (so the carrier can send you the policy packet)?
Are you currently in a wheelchair or do you use a walker? Are you on oxygen?
Have you ever been convicted of a DUI or felony?
When answering questions on the application, be as forthcoming as possible.
The insurance companies know more than you think. They likely know what outfit you have on right now.
Lying will only result in a denial of coverage or a denial of your family’s claim later.
Don’t risk it.
Mortgage protection insurance with living benefits protects you and your family, helping everyone sleep easier. Isn’t it time you requested a free quote?
15-Minutes and You’re Covered
You just signed a major loan. Don’t you want to know your family has a home to come back to when you pass?
Even if you don’t pass away…
What if you experience a serious health concern ten or twenty years down the road?
Wouldn’t you love a death benefit just in case, and living benefits to cover you while you’re alive?
And if you feel invincible like every other young homeowner, at least get a mortgage protection policy that offers cash back.
If you never use the coverage, no harm no foul.
You get a big fat check at the end of the term.
At least you’ll have supreme peace of mind knowing you paid off your home, and kept your family safe the whole time.
What If My Lender Said I Don’t Need It?
Of course they did. Their job is the loan, not your family
If something happens to you, the bank takes the house
Mortgage protection insurance gives your family time, options, and stability
In addition to invincibility, I often hear the same objection from younger prospects who just bought a home.
“I just talked to my lender,” they might say, “and he said I don’t need mortgage protection.”
Sigh.
In a way, your lender is correct.
After buying a home, you’re very familiar with your lender. You’ve worked with that person extensively from the time of first contact through the closing process.
You trust your lender. Therefore, it makes sense you would want your lender’s opinion on whether mortgage protection insurance is a need, or a want.
Your lender is right in the sense that mortgage protection insurance is not necessary in the home buying process.
Your loan will not go poof and disappear if you do not sign on the dotted line.
However, your family won’t be protected in case something happens to you, and that is the reason your family should want mortgage protection coverage.
Your lender will flat out tell you, “No, you don’t need mortgage protection insurance.”
But of course your lender is going to say that.
Here’s a thought experiment.
Let’s say you forgo the mortgage protection, and you happen to pass away soon after closing on your home.
Your family is now missing your income.
What if they can’t cover the loan payment?
What will happen to your family?
What do you imagine will happen to your new home?
Here’s how this scenario might play out if you don’t have any life insurance or savings in place.
Your family will have to start a GoFundMe or find other living arrangements.
As far as your home goes, your lending company will foreclose on the home and take it from your family without remorse.
And your lender who told you no, you don’t need the policy?
No appealing to that person will change what will inevitably occur.
If only you’d had mortgage protection insurance in place before you passed away.
The fact is, mortgage protection can keep your family in the home for an affordable premium in case tragedy strikes.
In other words:
Mortgage coverage keeps your lender at bay in case you pass and your family can’t pay.
Protect Your Equity, Memories, and Those You Love
The good news is that signing up for mortgage protection insurance takes as long as cooking a frozen pizza in the oven.
Except it’s good for you.
Because let’s face it:
Your family’s future is too important to leave to chance.
Make the call, get the quote, and lock in that peace of mind today. A dedicated agent is standing by to serve you.
