Exactly what is Mortgage Protection?

Ever wonder what would happen to the mortgage if something happened to you? Without what is commonly called "mortgage protection", or a lot of cash, your loved ones could lose the home in which they live.


What is "Mortgage Protection"?

Mortgage Protection is a quick and simple plan you put in place to protect your family using a life or disability insurance policy. No Medical Exam, No Hassle. Quick and Easy.

Would my family really lose our home?

With the loss of income that typically accompanies death, disability or a critical illness, the answer is simple. If the mortgage doesn't get paid, the bank takes the home.

Couldn't they just sell the home?

Potentially, yes. Consider...How long will the house be on the market? Will it need repairs or updating? Will they wind up selling it at a bargain basement price and lose the equity in the home?

If something happens to me, what does a Mortgage Protection plan cover?

A plan can cover death, disability, critical illness and more depending on the company, your eligibility, and the plan for which you apply. Fill out the form on the right for basic costs, then click "Request Application" to talk to your local agent.

Can I really get my money back if I outlive the policy?

Yes. It's called Return of Premium and its available through certain companies according to their individual policies.

How does a plan become a "Paid-Up" life insurance policy?

Some companies allow you to convert your Return of Premium policy to a fully-paid up life insurance policy covering you to age 100 ~ without "proof of insurability!" For example (depending on age, etc.), instead of getting $20,000 back, the policy becomes a $40,000 life insurance policy lasting to age 100. You never have to pay on it again, and you name whoever you want to receive that money.

How does a Mortgage Protection Plan supplement life insurance?

Some people have enough life insurance to take care of some expenses and to replace some income for a while. Many supplement their current life insurance with a insurance policy specifically tailored to a strategy or plan to "take care of the mortgage" if something happens.

Why don't I just get life insurance?

What some people call "Mortgage Protection" is life insurance. It's just quick and easy to get. We offer the other kind as well, including term, universal, whole life, and burial insurance. Just fill out the form to the right, and click "Request an Application" and your local agent will be happy to discuss the details with you.

What's the difference between PMI (Private Mortgage Insurance) and a Mortgage Protection plan?

PMI protects the lender if you default on your loan. It doesn't help your family one bit. Life or Disability insurance used for Mortgage Protection planning protects your family from losing the home if something happens to you by placing cash in their hands.

Will "Mortgage Protection" pay my mortgage if I lose my job?

No. Some Mortgage Protection policies will "waive the insurance premium" if you get laid off. There is no insurance that we know of at this time (other than unemployment) to help with the mortgage payments. There was one a few years back; however, when unemployment hit about 6%, the product was dropped. If you hear about one, send us an email. We'd like to offer it to people if its out there.

Why are all the prices so different?

Different companies price their products differently and each product has different benefits. The price comparisons provided are there to help you get a general idea of basic costs. Just click through, fill out the short form, and your local agent can review the differences with you.

How can I keep my costs down?

There are a number of different strategies that may work for you. The best way to find one is to choose an instant quote, request an application and talk with your local agent.

Can you give me an example?

Sure, let me tell you a story...

The Story of the Burks and the Parkers

Here's a common story...John & Marge Burks got through settlement...so did Rob and Jessica Parker. Within weeks both couples got all kinds of letters about "Mortgage Protection"...both couples got to thinking "what if something happens?" So, both couples started to look into Mortgage Protection, but life got complicated what with bills and all. Here's how it panned out...

The Parkers were on a tight budget, but they wanted to get something "just in case." So, they clicked through our site and eventually decided it would be best to at least get coverage on Rob. They requested an application for 3/4 of the mortgage amount. They figured if Rob passed, Jessica could pay off half the mortgage and have a little left over.

The Parkers talked with Diane Smith, an agent of ours...and got a policy effective within a week. No invasive medical exam, it was a "what-you-see-is-what-you-get" type of policy, no long wait wondering if they'd got it or not. Simple. Quick. Easy.

The Burks had some insurance through work...enough to replace income for a while if one of them passed, but not enough to cover the mortgage. Marge clicked through our site and got some quotes. Then they got busy, bought some stuff, and never got any mortgage protection.

I'll leave the conclusion of their stories up to you, because its the conclusion of your story that counts.

I will say I've seen this scenario play out on a regular basis...how it plays out in your life will be up to you.

I hope we can help, because its important.

                                   ~ DOUG SANDS