In this article, we will discuss what mortgage payment protection is and how it can help protect your home. Mortgage payment protection will help you cover your mortgage payments during the critical time following an unexpected death, disability, or job loss.
Your home is most at-risk following the death or disability of a loved one, who contributes income to the household. When a spouse or partner dies, their income dies with them.
Most households, these days, comprise two adults contributing income to the household budget. Most families’ budgets cannot survive the loss of one family member’s income for an extended period.
Mortgage payment protection to make mortgage payments
Mortgage payment protection (MPP) works in different ways. The way it’s used most often is to protect the home following the death of an income producing family member.
When a loved one dies, the surviving spouse or partner often cannot continue to meet their financial obligations on a single salary. Mortgage payment protection is an insurance product designed specifically for this situation.
Here, we help clients get qualified for coverage that will pay your mortgage payments for a specified period, from 1 to 3 years, on average. This allows the surviving spouse or partner to continue to make mortgage payments and not have to sell the home immediately.
This allows the spouse or partner not to have to pay the mortgage payment. It buys them time to decide what is best for them and their family’s home and future.
Sometimes, it will mean refinancing the house to get lower payments. Sometimes, it means selling the house and using the equity to purchase another house (example – when an individual wants to downsize homes). Sometimes, the money is used to pay down the mortgage, so there is no outstanding debt when the house is sold.
MPP allows the surviving spouse or partner to get the best price for their home and sell the home when it is most convenient to them.
MPP works best for couples with limited budgets who require a small premium. It also works best for elderly couples with limited budgets who will move or downsize when a spouse or partner dies.
Mortgage payment protection for disability
Disability is one of the leading reasons homes are lost to foreclosure or bankruptcy. A sudden increase in medical bills and doctor bills occurs when people become disabled or injured.
Many employees are lucky to have short-term disability in their benefits package at work. If they don’t have it offered for free, they can often purchase it affordably through their employer’s group plan.
Most employee benefit plans restrict income to 60% of your regular wages or salary. This leaves many families with a significant financial shortage each month to pay their bills.
Mortgage payment protection for disability will make mortgage payments for individuals who have become disabled and cannot work for an extended period. We, most often, help people cover all their mortgage expenses. This includes mortgage payments, taxes, escrow, and homeowner’s insurance, so the home will not risk going into foreclosure or bankruptcy during a period of disability.
Most people become disabled for only a brief period. Some people will be disabled for one to two years. Even fewer people will be permanently disabled.
MPP for disability protects your mortgage payments for up to two years, until you can get back to work and contribute to the household income of your family.
Mortgage payment protection for unemployment
Periods of unemployment are a threat to any family’s ability to make their mortgage payments. Most people would love to have a financial safety net that would protect them during periods of unemployment. Mortgage payment protection for unemployment can offer help in this area.
Most mortgage payment protection plans for unemployment will allow the owner of a mortgage protection policy to waive their mortgage protection plan premium during periods of unemployment. This allows the homeowner to protect the home if a spouse or partner dies unexpectedly, but assures they need not make the premium payment during periods of unemployment.
It typically covers periods of unemployment for up to six months. The mortgage unemployment insurance will waive your mortgage protection premium, during this time, allowing your mortgage protection policy not to lapse while you are seeking new employment.
For those looking for unemployment mortgage protection to pay their entire monthly mortgage payment, contact us directly. The options offered by insurance companies are limited, as our eligibility requirements.
Protecting your family and home is one of the best investments you will ever make. Mortgage protection and mortgage payment protection plans are very affordable and designed to fit into every budget. We can help you understand your options and show you what plans will offer you the most protection for the least money.
We hope this article has given you a clearer understanding of your mortgage payment protection options. Having something in place to protect your mortgage payments when you die, become disabled, or become unemployed is an important financial safety net for your home and family. Call us today. We can help you understand your options and get you qualified for this protection.