You’ve worked extremely hard to obtain your house. If you have an outstanding mortgage, it is important your home is preserved for your family if an unexpected tragedy occurred. Mortgage Life Insurance is a form of insurance designed to protect the amount owed on a mortgage.
HOW DOES MORTGAGE PROTECTION WORK?
Simple – Very similar to a traditional life insurance policy… If the insured were to pass away while the Mortgage Life Insurance policy was in force, the insurance company will pay the face amount (death benefit) of the policy. It is normally paid in a one-lump sum giving the beneficiary the ability to:
Apply 100% of policy proceeds to principal of outstanding mortgage loan.
Pay only a partial amount of the outstanding mortgage balance and continue to use proceeds to make as many future mortgage payments as you decide to.
Use proceeds to continue to make ongoing monthly mortgage payments and perhaps consider investing a partial amount or using some of the proceeds to cover ongoing living expenses.
Do as you please. It is important to know that although the focus of a Mortgage Protection Life Insurance policy is to cover your mortgage, under the policies that we offer… you are not obligated to use the death benefit proceeds to do so. You have the flexibility to decide what’s best for you and your family. We are simply here to help guide you in the process.