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A Guide to Mortgage Protection Plans

A Guide to Mortgage Protection Plans

Your home is the largest purchase you will ever make, and it is the center of your family life.  Most people have a mortgage on their home, and don’t often tihnk about how that mortgage would be paid if they were disabled, or how their loved ones would pay that mortgage if the breadwinner in the household were to suddenly pass away.  Mortgage protection plans offer the answers to these questions we all prefer not to think about. 

Mortgage protection plans usually include two parts.  One is coverage to help pay your mortgage if you are disabled.  This is a form of disability insurance.  It ensures that the mortgage payments will be made when you are unable to work in order to pay them.  There is usually a limit on the amount of time for which the plan will pay your mortgage, and this varies from plan to plan.

The second part of the coverage provided by mortgage protection plans is essentially a life insurance policy.  It provides coverage to pay off your mortgage in the event of your death.  This means that at an already difficult time, your family’s troubles will not be compounded by being forced to find a new place to live because they are unable to pay the mortgage without your income.  Many people consider this to be the most important part of the coverage offered by mortgage protection plans.

Although no one wants to consider the unpleasant possibility that something serious could happen to them to leave their family without the means to keep their home, it is something every homeowner needs to give some thought to.  Mortgage protection plans offer you the peace of mind of knowing that whether you are seriously injured or worse, your family will at least not have to worry about how they will pay the mortgage and where they will live. 

Anyone who has a mortgage should consider mortgage protection.  Mortgage protection plans are especially important if you do not have much in the way of savings or do not have enough life insurance to provide money for living expenses as well as covering the mortgage.  Anyone who is the main breadwinner in the household where no other adult left behind could earn enough to pay the mortgage should consider taking out this kind of coverage.

Mortgage protection plans vary from company to company in what coverage they offer, but they are generally similar to a combination of disability insurance and a term life insurance policy.  Even if you already have both of these polcies, it is a good idea to look at how much you have for benefits and consider whether or not you need more coverage that mortgage protection can provide.

The cost of mortgage protection plans depends on a wide variety of factors, from the value of your home to the state of health of the main breadwinner.  You should obtain several quotes and compare them in order to be certain you are getting a good rate on your premiums.

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