is mortgage insurance a good idea

should you get mortgage protection insurance

Mortgage Life Insurance is an innovative way to provide life insurance. Some might say it's an over-the-top method, and in many cases, they're correct. However, as stated earlier, many agents utilize this marketing strategy to attract prospective homeowners. They are aware of the requirement for additional life insurance coverage.

A few independent life insurance companies use these "life moments" to provide life insurance. They're not trying to fool you into believing they are associated with your lender, but they want you to let them know of their services or products.

does life insurance cover mortgage protection

Scammers may use data from public sources to reach potential victims, such as in the example below. Scammers might want to take your cash, but a lot are also searching for your data to steal your identity, which means more than your money is at risk.

If you just recently purchased a home or refinanced your mortgage, you will likely receive many offers in the mail for "Mortgage Life Protection" or "Mortgage Life Insurance." In this article, we will take a look at the pros and cons of Mortgage Protection Insurance. You can answer the question: Is Mortgage Protection Life Insurance a scam or a smart move?

does life insurance cover mortgage protection
is mortgage protection insurance required

is mortgage protection insurance required

Do you think this is a bright idea or an omen?

Let's suppose you have an outstanding mortgage of $250,000. The mortgage protection policy will typically provide you with $250,000 of term life insurance throughout your mortgage. If you pass away, your family members can repay the mortgage and remain in the house. Sometimes, they're designed so that the policy reduces in value as time passes (as you pay off the mortgage).

is mortgage insurance a good idea

should you get mortgage insurance

Some independent life insurance agencies use this "life event" to offer life insurance. They are not trying to mislead you into thinking they are affiliated with your lender but want you to make them aware of their products or services.

why is aig calling me
why is aig calling me

You'll receive many mailers when you purchase the house you want and refinance or repay your mortgage. These mortgage protection insurance appear to be official. They mention the name of your lender and how much you owe on your mortgage. Life insurance agencies and companies get this free public information and mail out letters or postcards. If you notice the name of your mortgage company in the document, it may appear official. Many people believe they're obliged to act.

what does mortgage insurance protect

Life insurance for mortgages is specifically designed to make your mortgage payment upon loss of income or disabled. The policy typically has an increasing benefit (face) value that is reduced in proportion to the decrease in the value of your mortgage. The insured should name your spouse or a third party as the beneficiary so they can pay off your home in one lump amount. Your beneficiary could also keep the death benefit and continue to make monthly mortgage payments.

what does mortgage insurance protect

Frequently Asked Questions


Is mortgage protection insurance required? Mortgage protection insurance isn't needed. It isn't the same as private mortgage insurance, which many banks or lenders will require you to buy.


Once you pay off your mortgage, you will no longer have a lender requiring you to have homeowners insurance. While you aren't federally required to have it, keeping your coverage is essential since it protects you financially if your home incurs significant damage or someone is injured on your property.