Life is a gift and we don’t know the day we will die. Here are 7 reasons why you need mortgage protection insurance today!
1. You don’t know when you will die
If you don’t know the day you will die, then mortgage protection makes perfect sense. Mortgage protection insurance is the perfect financial solution that allows you to transfer the financial risk of losing your home to an insurance company.
For example: If you own a $250,000 house, you can pay an insurance company $35 a month to pay off the mortgage on your house when you die. This will allow your family and loved ones to keep your home when you die. It will allow your mortgage to be paid off so your family can be liberated from their biggest monthly expense.
None of us know when we are going to die. If you do know when you are going to die, just call us a month before and we will set you up with a great mortgage protection policy.
2. You do not have enough money in the bank
If you don’t have enough in the bank to cover six months of outgoing expenses, your home is at great risk when you die. Most working couples are one paycheck away from financial disaster.
When a loved one dies, your paycheck dies with them. The surviving spouse often cannot afford to make the mortgage payments and will lose their home quickly.
Everyone can afford to buy some amount of mortgage protection. If a husband says he cannot afford to buy mortgage protection, it means he is spending money on other things he considers more important than providing a home for his family and loved ones when he dies.
If you can’t afford a $29 per month mortgage protection payment, how will your family be able to pay off your $175,000 mortgage with your $1,600 mortgage payment when you die? They can’t, they won’t, and they will lose your home when you die.
3. You don’t have enough life insurance
If you make $50,000 a year you should have roughly $500,000 in life insurance. Using a multiplier of 10 times your salary assures your spouse and family that they will have enough money to survive financially for at least 10 years after your death.
Your family and loved ones will be able to grieve properly, keep making payments on your current financial obligations (including your mortgage), and not suffer any significant impact in their standard of living after your death.
A separate mortgage protection policy is recommended to have better control over your finances and expenses in the future. If you have $500,000 life insurance, and a $250,000 mortgage, some would say you should get $750,000 worth of life insurance.
If you have $500,000 life insurance, and a $250,000 mortgage, some would say you should get $750,000 worth of life insurance. However, after your home is paid off you will be paying for an extra $250,000 in life insurance that you don’t need. A separate $250,000 mortgage protection policy will allow you to drop this insurance policy and be able to use this insurance premium money elsewhere in your budget.
4. You have credit card debt
If you have credit card debt that goes unpaid every month, you need mortgage protection!
Your credit card debt and all other consumer debt (car loans, appliance loans, student loans, etc.) will transfer to your spouse upon your death. Carrying credit card debt month-to-month is a great predictor that your surviving family members will not be able to afford your home mortgage payments when you die.
Mortgage protection solves this problem for you. You can afford mortgage protection, you are just spending money on the wrong things right now.
Where you spend your money shows where your priorities lie. If you spend money that you don’t have right now (credit card debt) on toys, clothes, fashion, vacations, electronics, etc., and not on mortgage protection, it is a good indication that you are more interested in instant gratification purchases rather than protecting your family when you die.
Everyone can afford mortgage protection; you don’t even have to pay the entire mortgage off! Even having an extra $25,000 to $50,000 in mortgage protection will allow your surviving family members a year or two of mortgage payments while they work things out financially; it will provide them options that they will not have without mortgage protection.
5. You have children
If you have children, your spouse will be left with significant financial obligations when you die. He/she will be the sole income provider and be responsible for paying for your mortgage and all other debts.
Having children is a tremendous responsibility and you are responsible for those children while you are alive, and after your death. When a parent dies, children are seriously affected by this loss. They not only lose a parent, but also potentially the home that they live in; your family will be negatively impacted for generations to come.
Keeping your family in their home, in their community, surrounded by their same friends, and in their social support network will be critical for them to adjust to their new lives after your death.
6. You are healthy
Even if you are healthy there is a good chance that you will be sick someday. We talk to people every day who never envisioned they would have the health problems they are currently experiencing.
Our health is a gift and we don’t know what tomorrow holds for us. The lives of those around us are negatively impacted when we suffer significant health problems. Often these health problems will lead to a shortened lifespan.
7. If your parents have a history of disease or illness
If your parents have any health problems, you will be genetically predisposed to have these problems too. Waiting to get mortgage protection insurance until after you suffer health problems is financially irresponsible. Mortgage protection will be harder to get, it will cost much more, and it will leave less money for you and your family to do things that are important to you.
If your parents have a history of diabetes, heart problems, liver problems, cancer, rheumatoid arthritis, or any other significant health problem, get your mortgage protection now!