Mortgage Protection insurance plans help the insured pay for their mortgage payments in the event of death, disability or critical illness. For its valuable customers, OptInsure is providing the necessary information as well as the best mortgage protection insurance quotes so that they can easily choose the most suitable plan for them.
Mortgage Protection Life Insurance is a life insurance policy customized to take care of one’s mortgage payments if they pass away during the term of the policy. That means if someone is to die while the mortgage protection life insurance is still in effect, the policy provider will pay their family for the outstanding amount of mortgage or death benefit purchased. For example, if someone has a 30-year mortgage, they can get a mortgage protection quote for the same and buy a plan which covers the mortgage for the entire amount or a portion of the mortgage debt. A mortgage life insurance plan ensures that the family members will be able to pay off their mortgage and will have a mortgage-free home over their heads, even if the insured person is deceased.
Generally, there are two types of life insurance mortgage one can choose to link with a mortgage - Level Term and Decreasing Term. Level Term insurance has a set level of premium to be paid by the insured for generally 10,15,20 or 30 years. While in a Decreasing Term insurance the premium decreases along with the reducing debt till both become zero ultimately. Let Optinsure shop multiple mortgage life insurance rates and pick the best plan that suites your financial needs.
This concept can be confusing, Private Mortgage Insurance or PMI is made to benefit the lender, instead of the borrower. This means if a borrower can’t pay his mortgage, his home might go in foreclosure and the outstanding debt will be paid by selling the home. If selling the home doesn’t pay the total amount, then the insurer will pay the difference to lender. Usually, a borrower is not benefitted from this plan and should opt for a mortgage life insurance plan as it pays the borrower a lump sum amount to pay the remaining debt. PMI is a separate cost that gets paid to the bank with your mortgage payment. PMI commonly required when the borrower has a lower credit score or puts down less than 20% on the homes price.
