More and more people are buying new homes or refinancing their mortgages to lock in historically low rates. However, life is often unpredictable, so you need a way to protect your investment for the entire balance and duration of your loan. Adding mortgage protection coverage to your life insurance policy ensures your spouse has the resources to pay off the debt if you’re unable to. Here’s what you should know about this coverage.

What Is Mortgage Protection Insurance?

For most people, making mortgage payments is one of their top financial concerns. Without the protection of life insurance, your family members may have to sell the home or let it go into foreclosure if you pass away or sustain a debilitating injury. This provides valuable protection for those who matter most, ensuring they have a place to live without worrying about finances.

How Mortgage Protection Insurance Works

Standard life insurance policies pay benefits to your named beneficiaries, who have to decide what to do with it. Mortgage protection insurance, on the other hand, works a bit differently.

If the policyholder passes away, the insurer pays off the balance of the loan directly to the lender. If the policy was written to cover the full value of the home, your family will receive what’s left over after the mortgage has been paid off.

Mortgage Protection & Disability

Some mortgage protection insurance policies also pay benefits if you’re involved in a disabling accident or develop a medical condition. Depending on the terms, these policies may cover your monthly mortgage payments for up to two years. While you’ll still be responsible for utility bills and HOA dues, having the mortgage paid for alleviates stress and allows you to focus on your recovery. 

If you want mortgage protection insurance, Nicole Gumm Groseclose Insurance Solutions has been helping families throughout Covington, Clifton Forge, Bath, Fincastle, Roanoke, Lexington, and Waynesboro, VA, protect what matters most for over 17 years. She takes the time to develop personalized life insurance solutions tailored to your needs, with policies backed by some of the industry’s leading carriers. Visit her website for an overview of her insurance services, or call (540) 968-1569 to request a quote today.