subject: Is Your Mortgage Protected? [print this page] There are a lot of mortgagees who pay an extra amount with their mortgage payment to get the benefits of paying off the total loan earlier. But, life often throws curve ball. What would happen if the mortgagee dies before the mortgage is fully paid? A well crafted whole life insurance policy can help protect the mortgagees family from fore closure as well as to pay off the mortgage earlier. By the way, thanks to the insurance proceeds received, the mortgagees family may even be able to choose to buy a fully paid up new home at their chosen location or in a better neighborhood which is more convenient for childrens education.
Life insurance is a reliable means to help pay off the total mortgage in the event of death of the principal mortgagee. Without life insurance the house may go to fore closure after the death of the main income earner. With life insurance, if the family wants to move to a better neighborhood, they can do it for securing a better future for their children. The family can also do it by paying off the remaining mortgage to stay in their comfortable home. This is why life insurance can be the best gift a father can plan for his beloved children. If we think deep, there is perhaps, no other match for life insurance as a beautiful gift for children. It guarantees that enough money will be there to make your dream come true even though you are buried.
When will your mortgage be fully paid? It depends on the regular payment of the mortgage. Any additional amount of payment will help decrease the total length of payment. It may be okay to pay more than required. But, it does not cover the risk of a sudden death of the principal mortgage payer. Therefore, the surviving family is very likely to get into a big financial trouble in the absence of proper life insurance protection. On the contrary, if this extra additional payment goes into a life insurance policy as premium payment, the family is protected. And if the mortgage payer remains alive and the policy purchased is a whole life policy, he may use the cash value of the policy to help pay down the mortgage loan earlier (Of course, if you access the policys cash value through policy loans, you will pay loan interest and unpaid policy loans plus interest will reduce the policys cash value and the death benefit.). Thats why, you should consider purchasing life insurance policy to protect your mortgage, and from a reliable company. Please note that home owners insurance is not life insurance.
Life insurance provides certainty to make you whole again. Death benefit of a life insurance provides protection from creditors and can help pay off the mortgage in the event of the insureds death. You can discuss about your need with a life insurance professional to ensure peace of mind.
You can review your existing policy to see if it meets your financial goals and learn more about mortgage protection by contacting Mohammad Nasirullah at 347-280-8826. Mohammad Nasirullah is an agent with New York Life Insurance Company. An agent who may be the only professional that can deliver immediate help to a helpless family after a loss.
The offering documents (policies, contracts, etc) from New York Life and its subsidiaries are available only in English. In the event of a dispute, the provisions in the policies and contracts will prevail.
