What is Mortgage Protection?

For most of us we need to borrow money to purchase a home. We save up for a down payment and then borrow the remaining money to pay for the home. This money we borrow is our mortgage. Each month the payments need to be paid on that mortgage. As we make these payments the principle will slowly go down until we finally have no more mortgage.

However, during the period that you have the loan from the bank those payments must be paid. It is due every month. It doesn’t matter if you sick, it doesn’t matter if you lost your job and it doesn’t matter if you pass away. Every month, that mortgage payment is due.

Mortgage Protection is not PMI. PMI protects the lender, not the borrower.Click here to read more.

Mortgage Protection is an insurance policy that protects your home in case of a premature death or disability of one of the homeowners. There is a death benefit, for the amount of the mortgage, placed on you. Upon death, this benefit is paid. The mortgage is then paid off and the home is left free and clear for your loved ones. If you become disabled or need skilled nursing care, Mortgage Protection Insurance can provide funds to make your monthly mortgage payments.

Let us illustrate..

John and Jenny purchased a home for $500,000. When they purchased the home they put $100,000 down and took out a 30 year mortgage of $400,000. Every month they are making payments on their mortgage and every month their mortgage slowly decreases. A few months after they purchased the home, they each purchased a $400,000 insurance policy to pay off their mortgage if either one of them were to pass away. Each month, they pay their mortgage and each month they pay a small premium to protect their mortgage. Ten years later John is diagnosed with cancer, which eventually takes his life. At this time the insurance plan pays Jenny $400,000 to pay off the home. When she uses this death benefit to pay off the mortgage she no longer has a mortgage payment to the lender.

It is as simple as that…

Mortgage Protection insurance is that simple. It is an insurance policy that protects your home in case of a premature death or a disability leaving the home free and clear for your beneficiaries.

EZ Mortgage Protection is ran by Aultium Insurance Services, LLC. Aultium is a group of licensed professionals that can answer any questions that you might have about mortgage protection insurance.

If you would like to like a book a 10 minute, free, no-obligation consultation to see how Mortgage Protection can protect your family click below. Otherwise feel free to mosey around a bit and read some more about protecting your home. You can read more about Mortgage Protection Insurance here.