Your home is almost certainly the largest purchase you will ever make — and the largest debt your family could be left holding if something happened to you. Mortgage protection insurance ensures that if you die prematurely, your family does not lose that home. The policy pays off the remaining mortgage balance so your spouse and children can stay in the house without the crushing weight of a monthly payment they cannot afford on a reduced income.
What Does Mortgage Protection Insurance Cover?
- Lump-sum death benefit sized to match your outstanding mortgage balance
- Decreasing benefit that mirrors your remaining principal as the loan is paid down
- Optional disability income rider — monthly benefit if you cannot work due to illness or injury
- Critical illness rider that accelerates the death benefit upon a covered diagnosis
- No medical exam options for qualifying applicants, making approval faster and easier
- Spouse coverage available on a single policy
- Benefit paid directly to your beneficiaries, not to the lender
- Convertibility options to permanent coverage on many policies
Mortgage Protection vs. PMI: Not the Same Thing
Many homeowners confuse mortgage protection insurance with lender-required PMI (private mortgage insurance). PMI protects the LENDER if you default on your loan. Mortgage protection insurance protects YOUR FAMILY by paying off your debt if you die. They are completely different products serving completely different purposes. PMI is a lender requirement; mortgage protection is a financial decision you make for your family.
Should You Choose Mortgage Protection or Term Life?
Both products can accomplish the same goal, but they work differently. Mortgage protection insurance is often easier to qualify for — especially with no-exam options — and has a decreasing benefit that mirrors your loan balance. Term life insurance offers a level death benefit that can cover the mortgage and much more: income replacement, education funding, and other debts. For most homeowners, term life provides more value per dollar. But mortgage protection insurance is an excellent option for those who have difficulty qualifying for traditional term life due to health history, or who want a quick, simple solution specifically tied to their home loan.
Get Mortgage Protection Insurance in Orlando, Florida
Insure USA, Inc. is an independent insurance agency serving Orlando and all of Florida. We compare mortgage protection options from multiple top-rated carriers to find the right coverage for your home and your family. Call us at (321) 235-7377 or request a free quote online.