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Consider getting mortgage protection insurance for your household

Published: August 17, 2021

Category: Educational, Mortgage Protection, Retirement Planning

Many people think spontaneity is the beauty of life. Little surprises will boost their day and uplift their mood. But sometimes, surprises can come in devastating forms that unfortunately, you can’t plan for.  If you find yourself in a position where you are no longer able to work, you’ll likely be in a position where you need some sort of relief. And this relief can come in the form of mortgage protection insurance (MPI).

In this article, we’re going to explore why you may want to consider getting mortgage protection insurance for your household. But first, let’s learn more about what it is.

What is mortgage protection insurance

If you’re unfamiliar with mortgage protection insurance, you’re not alone. Some are unaware that mortgage protection insurance is offered, and don’t know what it means. A mortgage protection insurance plan will provide coverage for your mortgage bills every month. It serves those who have been struck with unforeseen circumstances – like a sudden job loss, an unfortunate sudden death or an accident that hinders their ability to work – and are unable to make timely payments. However, an MPI won’t cover all of your home expenses. That means you’re still going to have to pay for your property taxes and homeowners’ insurance, as well as any other payments that are expected of you.

Could an MPI (mortgage protection insurance) be for you?

Mortgage protection insurance is not for everyone, but it’s a great tool to provide some peace of mind to you and your loved ones after an incident occurs. That’s why it’s possible you could need one. Ask yourself: What is my plan if my husband or wife is unexpectedly injured? What if he or she unexpectedly passes away? Are you losing a source of income if that happens? These aren’t the most pleasant thoughts, but they’re ones you need to be thinking about so that you can decide whether an MPI is the right move for your family.

Begin creating a backup plan for what you would do if a tragic situation left you without a source of income. Think about the ways in which you would be able to pay your bills. Would you have family help you out? If your loved one passes, will you have access to his or her life insurance? If you are unable to come up with a solid game plan, then you may heavily want to consider getting an MPI.

Disadvantages of having MPI (mortgage protection insurance)

With every insurance option comes advantages and disadvantages. So, of course, there are some disadvantages toward having a mortgage protection plan.

  • MPIs can come with costly premiums. In the beginning, you’ll probably find that the premiums match the coverage you get from the protection plan, but as time progresses, you may pay more than what you’re receiving.
  • There may be other options out there for you. If you have a low mortgage payment, a mortgage protection plan may not be in your best interest. This is because you can invest your money into an emergency fund that will be able to help make the monthly payments on your mortgage. Or, if you are the beneficiary of life insurance payments, that may be able to cover your mortgage as well. Make sure to look into the alternatives available to you before making any decisions.
  • It is less flexible than other types of insurance. MPI plans have some similarities to life insurance plans because they both provide death benefits. However, the death benefit on your MPI doesn’t go to a loved one. It goes to your lender. It’s possible that this would help your family because it would mean that they’re safe from mortgage debt. However, if your family no longer wants to live in the home or needs the money for more pressing issues, then the loved ones you are leaving behind don’t really benefit.However, if you had a life insurance policy, then the death benefits would go directly to whom you designated as your beneficiary. This is an important difference to note between the two that ultimately becomes a disadvantage for an MPI

Advantages of having MPI

Although there are some disadvantages to having an MPI, there are also some great benefits that come alongside it. These benefits could be the determining factor as to why you decide you need to get a mortgage protection plan. These include:

  • Peace of mind. Think about it: it helps your family. It’s one less thing to worry about. If your spouse is injured, having an MPI will allow you to focus more on tending to him/her instead of wondering how you’ll be able to make the monthly mortgage payment. You’ll also be relieved to know that this loan will also be fully repaid, regardless of the condition of your spouse’s health.
  • No one has to pass away in order to receive coverage. We’ve mentioned this multiple times already, but it’s something that people easily overlook or quickly forget. That’s why it’s worth repeating: your family can qualify for an MPI if you or your spouse become disabled or unable to work.
  • You’re guaranteed acceptance. If you have health issues or were recently injured, this is a great relief because you’ll get the help you need at a faster rate. Some other insurance policies also offer some form of guaranteed acceptance, but it’s possible that you will have to wait up to two years before you receive the benefits. This is especially important because if you pass away before you are accepted, then you will not receive a death benefit. With MPIs, applicants are quickly accepted and don’t have to worry about waiting those long periods of time. And what makes this greater is that you will be accepted for mortgage protection insurance even if you wouldn’t have been accepted by a traditional life insurance plan.

Where should you go to get your MPI?

Now that you’re thinking about how a mortgage protection services could benefit your home, you could be asking yourself what the next step is. Where should you turn?

This is where we can help. An internet search may be able to help you find an insurance agent to work with, but a generic internet search doesn’t know your situation or concerns like The Best Senior Services does. The Best Senior Services works with you to find you the best insurance agent that will help prioritize your needs and set you up with a mortgage protection plan that benefits you. Call us, or visit our website, to get started and find out who can help you.

 

Surprises can be great. Surprises can also be a complete misfortune. The tricky thing about them is that you can never plan for them. That’s why there are plans like MPIs (mortgage protection insurance) to help you get back on your feet if you’re suddenly unable to work. It’s important to figure out whether an MPI is valuable to you and your family. At the end of the day, when your head hits the pillow, you won’t lose any sleep knowing your MPI has your back.