Do I Need Mortgage Life And Disability Insurance

If you are a homeowner and currently not carrying mortgage life and disability insurance, you may want to rethink your strategy.   If you die or become disabled, what happens to the family you leave behind?  If you’re not carrying mortgage life and disability insurance, your family could potentially face certain financial disaster.

 Your lender or mortgage company is still entitled to receive monthly payments on the mortgage for your family’s home.  If you have made no provision for the family you leave behind, they will not only be faced with the devastating loss of a loved one, but also, the overwhelming financial disaster that could be left in the wake of your death.

Mortgage life insurance pays off your mortgage if you die. Mortgage disability insurance will covers your monthly payment obligations should you become disabled.  Mortgage life and disability insurance is actually a specialized form of decreasing term insurance.   What this means is to the purchaser is the longer you life, the more your policy decreases in relation to the total amount of your mortgage.  Policies come in a variety of amounts and can be either decreasing or fixed, depending on your specific situation and requirements. 

If you or your spouse is in “less than perfect” health, mortgage life and disability insurance may be right for you.  The costs can be significantly different than with other types of life or disability insurance and can sometimes be purchased without a medical assessment prior to policy issuance.  Some policies include a guaranteed insurability clause and may have relatively lenient underwriting standards.

If you are a first time home buyer and have not managed to amass the standard 20% down payment that is required for your mortgage, purchasing mortgage life and disability insurance may be a required by the lender.  In our current economy, lenders requirements for purchasing a home have become increasingly more demanding.  Consequently you may find that you are going to be required by your lender to carry this type of insurance.

If you currently have a mortgage and are not carrying this valuable insurance consider purchasing mortgage life and disability insurance.  Do your homework and research the various options available to you.  There are literally hundreds of providers of mortgage life and disability insurance and one of them will almost certainly have a policy that is right for you.