Life Insurance

Why Mortgage Protection Matters for Your Family

By Florida Family Coverage

For most families, the home is the biggest purchase they will ever make. But have you thought about what would happen to that home if you were no longer here to help pay for it?

The mortgage does not go away

If a homeowner passes away, the mortgage is still owed. The monthly payment, property taxes and insurance keep coming. If your family depended on your income, they could be forced to sell the house or fall behind on payments, all while grieving.

What mortgage protection is

Mortgage protection is term life insurance set up to match your mortgage. You pick a coverage amount close to your loan balance and a term that fits how long you will be paying, such as 15, 20 or 30 years. If you pass away during that time, the policy pays a death benefit to your family.

The money goes to your family, not the bank

The policy pays your beneficiaries directly. They can pay off the home, keep making payments, cover funeral costs or use the money for whatever they need most. With the mortgage-life coverage some lenders offer, the benefit may go to the lender and may shrink as your balance goes down. Be sure to compare.

Help while you are still living

Some plans include living benefits. If you are diagnosed with a qualifying terminal, chronic or critical illness, you may be able to access part of your death benefit early. Some plans also offer a return of premium option.

Why it helps to act early

• Rates are based on your age and health, so they are usually lowest when you are younger and healthier.
• On a level term policy, your premium stays the same for the whole term once you are approved.
• Many plans need no medical exam. Approval depends on your answers to health questions.

Mortgage protection is a life insurance policy and is not issued by or affiliated with your mortgage lender or any government agency. Benefits, riders such as living benefits and return of premium, rates and availability vary by insurance company, state and underwriting approval.

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