Speak with an experienced advisor! Why should you buy mortgage protection? Here are 8 reasons!
1. You have a mortgage
If you don’t have a mortgage, you obviously don’t need to purchase mortgage protection!
If you do have a mortgage that you would like to be paid off, paid down, have payments made, or have your equity in your home protected upon death, then mortgage protection is a perfect solution for you and your loved ones.
2. To protect your largest asset
For most individuals and families their home is their largest asset, together with their largest liability, and their largest monthly payment.
Your home is likely to be the single most important investment for building and preserving your wealth. It is a place that provides comfort, protection, security, and a sense of community. When a loved one dies and the surviving family members cannot meet the mortgage payments, these benefits disappear.
Your home IS worth protecting, and your home IS worth leaving behind for those you love!
3. To protect your family
If you love your spouse, partner, children, or other relatives living in your home you will want to make sure they can stay in their home should you die unexpectedly.
No surviving spouse or partner should have to attend your funeral wondering how quickly they will lose the home because they cannot make the mortgage payments. This happens every day throughout our country, and it is totally preventable.
You don’t want your family to need to set up a ‘GoFundMe’ page upon your death. We see this all the time on the Internet when people have not prepared properly and have had to beg for money from others to help take care of their financial responsibilities.
Mortgage protection is affordable and we can help you find something that will fit your budget.
Ben earned $58,389 annually, and Sarah earned $29,414 annually.
Brent was at work on a Tuesday, supervising the relocation of production materials for an upcoming production run. When Brent wasn’t looking, a forklift operator accidentally backed into him, pinning Brent between the forklift and a 2,000 pallet of supplies. Ben’s torso and waist area were crushed; his injuries were severe and life threatening.
Brent made it to the hospital in critical condition. The next day, unfortunately, Brent passed away because of his injuries.
Brent and Sarah had a $165,132 mortgage on their home. Their plan was to pay off their home in 15 years. Their mortgage payment was $997.23 a month on their 15-year mortgage term. Taxes added an additional $233.47 per month to the mortgage for a total of $1,230.70 per month.
Their home mortgage and taxes were $14,768.40 annually.
Sarah’s take home pay after taxes was $21,170.16. Without Brent’s wages to help pay the mortgage, Sarah would only have $6,401.76 to spend annually, just over $500 a month!
Brent and Sarah only had $647.21 in savings – not even enough for funeral expenses for Brent. A friend of Sarah’s started a GoFundMe page that raised enough for Brent’s funeral.
Sarah had to sell the house quickly at a low price to avoid foreclosure. She was able to sell the home for only $6,527.83 in profit, not even enough to pay off Brent’s truck loan!
Sarah had to move into her parents’ home with little chance she could afford another home in the coming years.
It is financially and emotionally irresponsible to leave your family unprotected and relying on strangers to donate money to help them with unpaid financial responsibilities which you have left them with.
4. Lower premiums
Mortgage protection typically has lower face values than traditional life insurance protection, and therefore, the premiums are lower and more affordable.
5. You only have employer provided life insurance
We recommend taking advantage of employer-provided life insurance for income replacement only. Most employer benefit plans offer life insurance equal to one year of your salary. This life insurance should replace your income when you die.
Your spouse, partner, or family will need those funds to purchase food, electricity, fuel, medicine, medical care, home and auto insurance, car payments, furniture payment, credit card payments, and any medical bills associated with your death. This employer-owned life insurance money will go FAST that first year!
Mortgage protection should pay off, pay down, or protect your house when you or a loved one dies. It keeps your family and loved ones in your home, close to your friends, and in your community, so your children need not change schools. Your family will need this community and social support to cope with your death!
6. You are on a tight budget
As mortgage protection is designed to pay off, paydown, or protect the equity you have in your home, the premiums are affordable. There are many coverage amount options that will protect your home and family upon your death.
Mortgage protection is extremely flexible as you can raise your coverage amount in the future when money becomes more available in your budget.
7. You have a temporary financial liability
A mortgage is a temporary financial liability. If you keep paying your mortgage, you will eventually pay it off over time.
Mortgage protection is a perfect insurance product to protect your home for a specific period of time. Most mortgages are 10, 15, 20, or 30-year mortgages. Mortgage protection can be set up for these specific time periods.
Life insurance protection products that last your whole life are often not the best fit for temporary financial liabilities as they cost money than a mortgage protection policy.
8. You insure other less important items
You have automobile insurance on your vehicle to protect your vehicle and its occupants. If your car is involved in an accident, the insurance company will fix or replace your car.
You have health insurance to protect your family and loved ones in case you become ill, have an accident, or are diagnosed with a terrible disease.
You probably have insurance on your cell phone, your television, your computer, your appliances, on the new roof you put on your home, and many other items you purchase each and every day.
Yet many people don’t have insurance on the most important investment they own – their home. It is silly that we would insure our cell phone against loss, and not insure our home against loss.
Summary:
Mortgage protection is affordable. It provides a critical financial safety net for your spouse, partner, or loved ones when you die. Without mortgage protection, most homes are lost within 1-2 years after the death of a loved one.
