Mortgage protection insurance is a type of term life insurance that pays off (or pays down) your mortgage if you pass away or get sick or disabled.
Mortgage protection insurance is designed to cover your mortgage for your family if you pass away or get terminally ill or disabled.
What would your family do about the house if you passed away early? Would they be able to afford to keep it without your income? Mortgage protection insurance takes care of this risk for you.
The plans are designed to either pay off your house in full or pay your family a number of months worth of mortgage payments to give them time to refinance, sell or make other arrangements with the home.
Because it’s term insurance, it’s designed to cover you for a number of years until your mortgage is paid off. Most plans are offered for people up to the age of 60.
Coverage amounts and term lengths vary depending on the carrier used and the applicant’s age, health and financial situation.
How much does mortgage protection insurance cost in Oregon?
The cost of mortgage protection insurance varies. Some of the factors that determine the cost and amount of coverage are your age, your health, your budget and if you want to cover the entire mortgage or just part of it.
Average plans range from around $25 per month on the low end up to around $250 per month on the high end. But again, it all depends on a lot of factors that are different for everyone.
That’s why I offer a free consultation to get to know you better. After I understand your health situation, your age, budget and coverage needs, I’m able to offer a customized mortgage protection quote that will take care of your needs.
To check plans and pricing, choose a day and time that would work best for a free phone consultation.
How is mortgage protection insurance different than mortgage insurance?
Often, when I speak of mortgage protection insurance, people think I’m talking about mortgage insurance. There is a difference.
A mortgage lender often requires a homeowner to have mortgage insurance on their loan if they did not put down at least 20% of the home’s value as a down payment.
This helps protect the lender in the case of the homeowner defaulting on the loan or becoming no longer able to make the payments.
On the other hand, mortgage protection insurance is optional and purchased separately by the homeowner. Essentially, it’s a type of term life insurance that is structured to take care of the mortgage in the case of the insured’s death, disability or terminal illness.
Mortgage protection insurance either pays off the home for the insured’s family entirely or provides a lump sum pay out that will be enough to take care of the mortgage payments for a period of time.
Most mortgage protection insurance plans have living benefits: The policy pays out if you are diagnosed with a terminal illness, need critical care, become disabled or need long-term care. Of course, different carriers have different options and riders available.
Get a free quote for mortgage protection insurance
Visit my free consultation page to set up a mortgage protection insurance quote. As an independent agent, I have the ability to shop many A-rated life insurance carriers to find you the most bang for your buck.