Companies are always looking for ways to sell you more insurance, especially life insurance. Mortgage protection insurance (sometimes called mortgage life insurance) generally falls into this category. What Is Mortgage Protection Insurance? Mortgage protection insurance is simply a life insurance policy where the payout is tied to the size of your mortgage. The idea is that if you die, your mortgage gets paid off and your family can then live in the house without having to worry about making the mortgage payment. Yes, they'll still have to pay the property taxes and insurance. The product is often sold by banks and lenders rather than life insurance companies. The beneficiary of the policy...
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NEW YORK, Nov. 30, 2021 (GLOBE NEWSWIRE) -- Life insurance can provide loved ones with the financial protection they need if the policyholder were to pass away unexpectedly. For those that own a home and have a mortgage, mortgage protection life insurance may seem like a good option. This type of policy will pay off the mortgage to the lender in the event of the policyholder's death. But before deciding on mortgage protection life insurance, it's smart to consider the coverage it offers and other options that may be available. Read on to learn how mortgage protection life insurance works, the pros and cons, and alternative options in order to find a life insurance policy with the right...
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Mortgage protection insurance: Do you need it? How does mortgage protection insurance work? Mortgage protection insurance is a policy that pays off the balance of your mortgage if you pass away, and is typically sold through mortgage lenders and banks. Lenders like mortgage protection insurance for one simple reason: lenders get paid in the event that you pass away. With a standard life insurance policy, the death benefit goes to the beneficiaries of your choosing; with a mortgage protection insurance policy, on the other hand, the lender is the beneficiary. Since the lender will be paid the remaining balance of your mortgage, your family will not benefit directly. For instance, say you owe...
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You did it! You purchased your brand new dream home and cannot wait to move in and start making your house a home. During the excitement, you pause to think about what steps you need to take to be sure your beautiful new home is fully protected – you have insurance in place in the event of fire or flooding. But what happens to your mortgage if something happens to you? Many homeowners face the same question -if you were not around, could your family continue to pay for the mortgage? Mortgage protection insurance may be just what you need to be sure that your loved ones are protected in the event of a death. It also may be a good option if you do not qualify for traditional life insurance or...
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Home » Blog » Can you Combine Mortgage Protection and Life Insurance on one Policy? I’m not a betting man, but I’d bet a pound to a penny (or a euro to a cent) that you’re on the road to owning your very own home. But let’s hold off on the clinking glasses and welcome mats for now. Because there are many other less exciting, some might even say boring, things that go hand in hand with purchasing a property. It’s not as easy as firing cash at the vendor and then walking away with the keys. But alas, you’ll need to sort out legal fees, stamp duty, and even insurance. That last one is where we can help, so again, betting, that’s why you’re here...
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Paying off a mortgage after your death is among the reasons to get life insurance. But there’s another policy type that covers you only for your mortgage debt, and it’s a useful alternative for some homeowners. In the event you die before you’ve paid off your house, mortgage life insurance (also known as mortgage protection insurance) takes care of any remaining balance on that loan. It shouldn’t be confused with the private mortgage insurance that’s required for homeowners who make a downpayment of less than 20% of the loan amount. That insurance protects your lender, where mortgage life insurance protects your heirs from inheriting your mortgage debt. “...
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Do I need mortgage life insurance? Mortgage life insurance could provide a pay-out if you were to pass away within the contract term. It is an effective policy to have if your partner or other dependents could not afford the mortgage without your income. When you buy your home, your mortgage lender may offer to sell you life insurance cover. However, it is essential to remember that you are under no obligation to buy it from them. Consider the different policies available to you and compare quotes with Caspian Insurance before making a final decision on mortgage life insurance. If you already have level term life insurance, you might still need mortgage life insurance as well. Our UK...
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How can mortgage life insurance help? Mortgage life insurance can help pay off your mortgage after your death. It can support your loved ones when they need it most, by helping them keep their home. But if your loved ones would need a bit more support to keep up with day-to-day costs or to achieve future plans, then other types of insurance might be able to offer more help. You might also want to think about critical illness cover. This kind of cover can pay out a cash lump sum if you fall seriously ill. It could help you and your loved ones pay off your mortgage, and let you focus on your own health and wellbeing. Decreasing cover Decreasing cover means that the amount your policy pays out...
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A white circle with a black border surrounding a chevron pointing up. It indicates 'click here to go back to the top of the page.' Mortgage protection insurance covers home loan payments if you die, but regular life insurance could be better Personal Finance Insider writes about products, strategies, and tips to help you make smart decisions with your money. We may receive a small commission from our partners, like American Express, but our reporting and recommendations are always independent and objective. Mortgage protection insurance can cover your mortgage payments if you die. MPI is not the same as mortgage insurance, which is required with smaller down payments. A term life insurance...
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The insurance products you choose should reflect your personal circumstances and what you want to protect. For example, a life insurance product usually makes sense for couples or parents. But it wouldn’t suit someone with no dependents, as the policy only pays out when you die. Someone with no dependants might be more interested in income protection insurance. This covers you if you lose your salary due to illness or injury. If you can’t afford to get cover for everything you want to protect, think about your priorities or consider a lower level of cover. Some protection might still be better than none. You might, for example, decide to make sure you can keep up with your mortgage or rent...
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