Mortgage Protection Life Insurance
What is a mortgage protection insurance?
Mortgage insurance deals with the fact that you can not control when you are going to die, covering the debt of your house with the bank when you can no longer do it. Therefore, it guarantees the financial security of your family.
Who needs mortgage protection?
The owner of a property that would like to make sure that his family can keep it if something unexpected happens to him such as a critical, chronic, terminal illness or the death of the insured. Can my family pay for the house without my income if I am no longer around? If the answer to this question is NO, then you must find a way to protect your investment for life.
How does a mortgage insurance work?
Depending on the age and amount of the mortgage, you can ensure that the husband and his spouse cover 100% of the risk. Age is an important factor for the price of the premium, the insurance becomes more expensive and this would require that only the person who generates the highest income be covered. Sometimes a smaller amount can be insured to make the monthly premium more affordable.
As our policies never decrease in value and mortgages do, we suggest that you control who is the beneficiary. Since the family can choose not to pay what is owed, and invest the income and continue making mortgage payments.
The peace of mind that a “Mortgage Protection” life insurance gives to the family is fundamental, in a situation in which the insured suffers a critical, chronic, terminal illness or death because it gives the family time to make a decision Smart instead of being forced to sell the property hastily to alleviate the increasing financial pressures.
Mortgage protection is protection that covers foreclosure. Guarantees that the family will not lose the home. Mortgage protection is the best way to insure your biggest investment: your home.
Life insurance is designed to replace your income in case of premature death, so that your family has financial security. Mortgage Protection insurance deals exclusively with the mortgage on your home that you owe the bank so that your family can see your insured future knowing they have a roof over their heads.
Different types of mortgage protection traditional and that offered by Mortgage Family Protection.
Traditional Mortgage Protection Plan
• Pay the loan directly to the mortgage company or lender
• The death benefit decreases with the loan balance (Pay the same premium each year and get less and less coverage each year)
• Joint protection, a benefit (collect two premiums, but there is only one benefit, one loan, so they only pay one death, even if two people die at the same time)
• Not transferable If you sell your home or refinance your mortgage, protection is lost because it is tied to the home. With the new mortgage, you would need to resubmit the application at a higher age, which means a higher premium. Also, can you guarantee that your health will remain the same?
This is the old / traditional plan. It is not the best way to protect your mortgage.
Do not confuse the PMI, which is a private mortgage insurance with a mortgage protection insurance. If your down payment on a home is less than 20 percent of the appraised value or sale price, your lender will require you to obtain mortgage insurance. A mortgage insurance policy protects your lender in case of default of payments. As a borrower, you pay the premiums and the lender is the beneficiary. Your family will never receive a penny of what you paid.
Plan offered by Mortgage Family Protection:
• The death benefit is always paid to the designated beneficiary and you can decide. Your spouse can pay the mortgage or continue with the monthly payments. When a tragedy occurs, such as death, it is important that your family can make their own decisions.
• The death benefit always remains level even if the mortgage balance decreases.
• Joint protection, double benefit (means that both died at the same time, this would pay double the benefit) in addition to any Accidental Death benefits that you added at the beginning.
• The premiums will remain level unlike the other plan, here the benefit and the premiums are kept at the same level.
• Benefits of life
• The Family Mortgage Protection plan offers an optional disability benefit. This benefit provides you with income to cover the mortgage payment, if you become disabled and can not work. This is two years of benefit per incident with a maximum benefit of $ 3,000 per month.
• Money back option At the end of the selected term, the plan will reimburse all premiums for free if benefits are not used. You can use this benefit to accelerate the payment of your home mortgage.
• Simplified critical illness. (In the separate application in Florida you will need) pay a lump sum benefit if the insured is diagnosed with a specific critical illness. Also available for spouse and dependent children.
Mortgage Family Protection - innovative coverage with unique features:
Maximum emission limits: $ 5,000 – $ 50,000 for each category.
Multiple benefits in all categories: The first benefit is paid at the time of the initial diagnosis of a condition or procedure (see the detailed list) in any of the three categories. If you continue to pay premiums and a condition or procedure is diagnosed in a different category, you will again receive the benefit payment indicated. Your maximum benefit is up to three times the benefit amount of the critical illness policy. The multiple conditions must be diagnosed at least 180 days apart.
Invasive cancer (100 percent) Non-invasive cancer (cancer in situ) (25 percent, payable once per lifetime) Maximum benefit for this category: 100 percent.
Heart attack (100 percent) Heart transplant (or combined transplant, including heart) – (100 percent) Cerebrovascular accident (100 percent) Coronary surgery (25 percent – paid once per lifetime) Angioplasty (10 percent) – pay once per lifetime) Maximum benefit for this category: 100 percent.
Advanced Alzheimer’s disease (100 percent) Coma (not as a result of a stroke) (100 percent) End-stage kidney disease (kidney stage) (100 percent) Major burn (100 percent) Major organ transplant (apart from the heart) (100 percent) Paralysis (Not as a result of a stroke) (100 percent) Maximum benefit for this category: 100 percent.
Multiple benefits within categories:
If you received a partial benefit within a category (for example, 25 percent of the benefit for coronary bypass surgery) and have another disease in the same category that pays 100 percent of the benefit (for example, heart attack), you will receive the rest of the total benefit for that category (for example, 75 percent).
Renewable: the policy is guaranteed until 75 years.
Waiting period: coverage begins immediately for all conditions in Category II – Heart / Cerebrovascular accident and Category III – Other diseases and conditions. Category I: cancer has a waiting period. See details below:
Definitions of cancer:
– Invasive cancer is a malignant tumor with uncontrolled growth beyond its original site (includes leukemias and lymphomas).
– Non-invasive cancer (cancer in situ) is a malignant tumor that has not invaded the surrounding tissue.
Cancer waiting period:
Invasive and non-invasive cancers have a reduced benefit during the first 90 days of the policy. If cancer is diagnosed during the first 90 days of the policy, the policy pays 10 percent of the maximum benefit for invasive cancer or 2.5 percent of the maximum benefit for non-invasive cancer (in situ). If cancer is diagnosed after the first 90 days of the policy, the benefit of invasive cancer is 100 percent and non-invasive cancer is 25 percent.