Rigel Hines and Associates Blog
Buying a house is probably the biggest investment you will have. It is also a huge source of debt you could potentially face. It is one of the reasons why mortgage protection insurance is quite attractive, as it is designed to be a solution to your monthly payment.
Before you begin to look around for quotes, you should know how mortgage protection insurance can benefit you:
What Is MPI?
Mortgage protection insurance provides your family the protection from mortgage payment in case the breadwinner cannot provide an income anymore.
For the most part, mortgage insurance works similarly to other forms of term life insurance. In the event of your death during the term policy period, your beneficiaries will receive a death benefit.
What Can You Gain From Mortgage Protection?
Often, it can be overwhelming how to properly allocate a lump sum of money that your family receives. MPI removes the guesswork for you. Considering that the mortgage balance is matched up to it, the money will be used for that. There is no need to worry about not enough money to pay for the remaining balance.
But, your credit could suffer badly if you fall behind on your payments as with other kinds of loans. This might result in losing your property. The mortgage protection insurance will continue to pay your monthly payment even if you die until the death benefit is used up.
Another benefit that a policyholder can get from mortgage protection insurance is the possibility of staying away from the underwriting process. Know that the health of the person determines the rates of life insurance, and avoiding underwriting could lead to higher premiums. But, it can be useful if poor health will increase the basic term life premiums.
Is MPI Worth It?
If you cannot obtain a reasonable rate for life insurance due to health reasons, getting a mortgage protection policy may be your best bet. There are insurance companies that recommend no medical exam policies for the same situations. However, it would be smart to check out the insurance firms before you sign up with your lender.
Find out and assess the features and pricing of mortgage protection insurance from several insurers. It is important that you understand what is included in the policy and what is not.
At Rigel Hines and Associates, we put our clients first by offering them policies that they can afford. Having insurance is a necessity nowadays and we're here to help you out. Learn more about our products and services by calling our agency at (708) 283-7316. You can also request a free quote by CLICKING HERE.
Phone: (708) 283-7316