Question:

How to approach mortgage protection insurance services?

Answer:

There are different mortgage protection insurance services offered to the homeowner to assist them with the mortgage payment in case of an accident, or injury, sickness or decease. Many of the mortgage protection insurance policies can actually benefit the borrower especially those who don't want to pass a medical exam for a regular life insurance.

Before signing up, assess what mortgage protection insurance services you need in particular.

Sometimes the coverage is too limited, too expensive, or overlaps existing life insurance coverage the borrower already has. So, before deciding on one, evaluate the coverage you already have, what possible other protection you may need, and do not fall for the lender insistence to sign up with a specific mortgage protection insurance service company and product.

Mortgage protection insurance packages are prolific on the Internet, but don't feel obliged to take the first quote. Shop the Internet much as you would shop for the best mortgage deal. Most common mortgage protection insurance services and products are:

  • Decreasing mortgage term life insurance - the premiums remain the same, but the coverage value diminishes as you go further in the loan.
  • Mortgage term life insurance - this package usually spans the lifetime of the loan - 10 to 30 year - and upon death, the beneficiary receives the full amount of the death benefit of the mortgage protection insurance policy.
  • Return of premium option provides the borrower with a partial or full refund in case they kept the insurance for part or full term of the loan. The insurance company will refund your premiums up to the full insurance premiums amount. This option is offered to borrowers so that they wouldn't keep thoughts as "my insurance money will be wasted since I'm not going to die".
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