When Is Mortgage Protection Insurance A Good Idea?

I’ve seen Mortgage Protection insurance… is this a good idea? [vs term or other options]

  1. 21750 POINTS
    Jim Winkler
    CEO/Owner, Winkler Financial Group, Houston, Texas
    Great question! It is generally a good idea to protect your family from any large financial loss, and the covering of your mortgage is certainly one of those. Many lenders will require that you have it when you secure your mortgage loan, to protect themselves, and you in the event of an issue. It is a good idea always to protect your family. If you would like more detailed information, please feel free to contact me, okay? Thanks for asking!
    Answered on May 7, 2014
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  2. 14231 POINTS
    Tom Sheehan
    Agency Owner, The Thomas G Sheehan Agency, 27 Glen Road Sandy Hook, CT 06482
    "Mortgage Protection Insurance" is a Life Insurance plan that you can obtain where the face amount of the death benefit covers the full loan balance of your mortgages.  The best time to obtain this is of course when you secure your loan.  Depending on the amount of down payment you invest at the time of your home purchase, banks may require that you also have coverage to protect THEIR interest.  The type of protection you are talking about protects your family's interest should you die.  Remember that any life insurance purchased for whatever reason is a love note to those who mean the most to you.
    Answered on May 7, 2014
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  3. 37376 POINTS
    David G. Pipes, CLU®, RICP®
    Business Development Officer, T.D. McNeil Insurance Services, Fresno, California
    There are two types of insurance that are often called “Mortgage insurance.”  The first is required by the lender if the down payment for a home doesn’t meet a certain threshold.  This insurance protects the lender against default.  This insurance is often required and included in the mortgage payment.  The second is a life insurance policy that reflects the balance due on a mortgage.  The idea behind this second form is for you to protect your family by making sure that they have a home, “free and clear” should you have a premature death.  This insurance is obtained through an insurance agent and is handled outside of the mortgage.
    Answered on May 7, 2014
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