The average mortgage payment for Americans is $1,566.1
With the median income for the American family set at $63,179 per year,2
this means that many American families dedicate at least one-third of their monthly income to their mortgage.
In the event you couldn’t make your mortgage payments anymore, what would happen to your loved ones? Would they be part of the 30-40 million Americans facing eviction or foreclosure?3
The good news is, whether or not you have a plan in place for protecting your family from housing insecurity, you can start today by learning about the benefits of mortgage protection insurance.
What is Mortgage Protection Insurance?
Mortgage protection insurance is a form of insurance designed to help protect your family from mortgage payments if you are no longer around to help provide income towards them. Mortgage protection insurance is similar to some types of term life insurance, but it has one key difference:
- Mortgage protection insurance, while acting like a term life insurance policy, is usually locked in for the same amount of time as the mortgage itself. You typically don’t have the flexibility to pick a mortgage protection insurance policy for one, two, or five years. These policies are typically found in 15 and 30 year terms.
Who May Consider This Policy?
Mortgage protection insurance is typically considered by homeowners during the process of buying a home. Since the purpose of this type of insurance is to protect others in the home from the burdens of mortgage payments in the event a breadwinner can no longer make payments due to death, you may find that one or two members in the household are on a policy.
Advantages of Mortgage Protection Insurance
Mortgage protection insurance is a great way to help protect your family from one of the biggest debts a person can have, and puts aside a set amount of money to help pay it. For many, mortgage protection insurance takes away the guesswork on where to put your money.
In addition, some mortgage protection insurance policies may help you potentially avoid the underwriting process associated with so many life insurance policies. Many life insurance policies are determined by an applicant’s health, and a mortgage protection insurance policy may be a great way to help keep your premiums on the lower end of the spectrum while providing coverage you need.
Mortgage protection insurance is a great way to protect your family from one of the biggest debts a person can have, and puts aside a set amount of money to help pay it.
Mortgage Protection Insurance May Be Right For You
At the end of the day, what makes a house a home isn’t the amount of rooms it has or pools you can fit in the backyard – it’s the memories you build while there. For many, homes have sentimental as well as fiscal value, mortgage protection insurance can help make sure your family’s fiscal status is protected in the event you are no longer there to make mortgage payments, and makes sure your house stays a home for years to come. To learn more about mortgage protection insurance, speak to a licensed insurance agent in your area.
- Business Insider, The average monthly mortgage payment by state, city, and year, 2020
- Census.gov, U.S. Median Household Income Was $63,179 in 2018, Not Significantly Different than 2017, 2019
- NLIHC, 30-40 Million People in America Could Be Evicted from Their Homes by the End of 2020, 2020