The Real Cost Of Not Having Mortgage Protection Insurance

InsuranceLecturer — Many homeowners don’t take the time to think of what would occur if they did not have the ability to pay their mortgage. But yet everyday people face illnesses, natural disasters or a sudden death in the family that can prevent you from having the funds needed to make your mortgage payments. With mortgage protection insurance, homeowners can have the extra protection needed in these circumstances.

A lot of those who purchase a home and finance a mortgage are in their young age and pretty healthy. When it comes to things that could happen to interfere with the ability to make money, they lack foresight. Illness and accidents, however, do happen and unless you have some sort of mortgage protection in place, you are still liable to make full mortgage payments even if you are not physically able to do so.

See also  Supplemental Policies and Coverages

One problem that is common is people being hurt in car accidents. A car accident can be damaging and depending on your job, you may not be able to work for several weeks or months even.

An even though you are likely to receive some type of settlement from the accident if it was not your fault that can take quite a while. In the meantime you are left with mortgage payments and no means to pay it. If you have mortgage protection insurance that has accident coverage included, your payments can be made until you are able to work again.

See also  New Jersey Homeowners Insurance

When thinking of illnesses such as cancer, heart disease and strokes. These are illnesses that strike all the time at people of all ages. A serious illness can and will prevent you from working. Your are likely to face losing your home to foreclosure if you have no regular salary coming in. Having mortgage insurance protection in place, you can apply for coverage once you are no longer able to work.

A doctor will basically be assigned to the case and depending on his or her findings, that will determine you will be eligible for coverage. Having to worry about losing your home shouldn’t be a concern for a family already facing hardship of a life threatening illness.

See also  Shopping and Applying For Homeowner Insurance

Most companies offering funding for homes have these types of policies available to the buyer. Usually, a rep that works with you during the loan process will ask you wether or not you are interested in mortgage protection insurance with your policy. Many homeowners initially turn it down due to concerns of saving a few bucks a month.

This certainly is your decision but it would be wise to weigh the benefits of having mortgage insurance protection against the possibilities of what could occur if you do not have it. Think of the long term effects and what you and your family could be facing in the event that you are not able to properly function due to an illness or accident.