Protect Your Loved Ones With Mortgage Protection Insurance

Protect Your Loved Ones With Mortgage Protection Insurance

Jul 14 2021

Protect Your Loved Ones With Mortgage Protection Insurance

As a homeowner, being able to pay your mortgage on time every month is important. What would happen to your loved ones if you were to die prematurely and your income suddenly disappeared? None of us know what the future will bring, but you can achieve peace of mind with a comprehensive mortgage protection insurance (MPI) policy, also known as a type of life insurance policy.

Mortgage protection insurance (MPI) is life insurance designed to pay off your mortgage if you were to pass away — and some policies may cover mortgage payments (usually for a limited period of time) if you become disabled.

However, do not confuse MPI with private mortgage insurance (PMI), which protects the lender if you default on the loan. With PMI, your family would still likely owe the balance of the loan if you passed away.

At Bearingstar we know there are a number of questions about life insurance/MPI.  We are here to provide answers and guidance.  Here are some frequently asked questions.

Do I really need life insurance/ MPI?

If you have anyone in your life that depends on you financially or if your family would have trouble staying in your home and paying the mortgage in your absence, then you should consider a life insurance policy. Learn more about the common life insurance misconceptions and coverages on our blog here.

Is life insurance expensive?

Life insurance may not be as expensive as you might think and is commonly overestimated, especially among younger generations.  Many Americans overestimate the cost of insurance by as much as three times the actual amount. This was especially true for younger generations. Forty-four percent of Millennials estimate that the annual cost of 20-year term life insurance for a healthy 30-year-old at over $1,000 when it’s closer to $165 per year. (1)

Do I need an in-person medical exam?

At Bearingstar, we work with many highly rated carriers who do not require a medical exam to obtain a life insurance policy.

Isn’t my policy through my employer enough?

In short, it will be different for everyone but it’s likely it will not be enough to cover your beneficiaries’ needs. Experts recommend having at least 5-8 times your income and some experts even recommend 10-12 times your annual income in life insurance depending on your individual situation.  This is far greater than the average two times your standard employer-provided life insurance policy will allow. (2)

In addition, you typically do not own your employer provided life insurance policy.  Meaning, if your employment ends with your company so can your policy.

Your home may be your family’s largest asset – and their largest financial responsibility. With affordable life insurance, you can protect your home and ensure that those you care about can continue to enjoy the comfort of their home even if you’re not there.

At Bearingstar Insurance, we know how important it is to understand your coverage options and our agents will help you explore all your options. Contact us today to learn more about how we can help you protect what matters most.

 

  • “2021 Insurance Barometer Study Reveals Common Misconceptions That Prevent Americans from Getting Life Insurance They Know They Need” 4/12/2021. com

https://www.limra.com/en/newsroom/news-releases/2021/2021-insurance-barometer-study-reveals-common-misconceptions-that-prevent-americans-from-getting-life-insurance-they-know-they-need/

 

  • “5 Myths Fathers Should Know About Life Insurance” Jun 21, 2021 Forbes.com

https://www.forbes.com/sites/financialfinesse/2021/06/21/5-myths-fathers-should-know-about-life-insurance/?sh=10e621282465

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