Mortgage Protection Insurance Vs. Private Mortgage Insurance (pmi)
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Mortgage Protection Insurance and Private Mortgage Insurance (PMI) are completely different. It is not unusual for homeowners to mistake private mortgage insurance (PMI) for mortgage protection insurance and vice versa. The product homeowners must acquire in order to spare lenders from losses in case of non-payment is called PMI. Mortgage protection insurance, which is also known as mortgage insurance and mortgage life insurance, is term life insurance that will shield the homeowner's family members in case he/she becomes disabled or even passes away unexpectedly. If the insured homeowner dies, the beneficiary(ies) will receive a death benefit (also called a coverage amount) which corresponds to the mortgage protection insurance coverage. As a result, they can pay off the mortgage itself and/or any of their other existing debts and expenses.
The use of your coverage amount is not restricted to the payment of the mortgage itself. The money can be used in a number of different ways. Your beneficiary(ies) can use your death benefit to cover various expenses, including but not limited to typical household bills, credit cards, loans, HELOCs, funeral/burial services, and nursing home care.
What should I consider before purchasing mortgage protection insurance to protect my home and family? A lot of questions come to mind, but the most important thing to consider is how the benefit will help your family stay in your home should anything come between you and your ability to pay the mortgage, such as becoming disabled or even passing away unexpectedly.
Mortgage protection insurance is an indispensable product for any homeowner who wishes to spare their family from any future financial problems. When you purchase mortgage protection insurance, you have the option to reduce your death benefit as often and by as much as you see fit as your mortgage decreases. When your coverage amount is reduced, your mortgage protection insurance premiums will be reduced accordingly. However, your mortgage protection insurance premiums will not be reduced on five or ten years from now's mortgage protection insurance rates. They will be reduced at the rate when you locked in (based on today's mortgage protection insurance rates). This would result in considerably lower mortgage protection insurance premiums in the future.
TermAdvantage will shop and find mortgage protection insurance that suits not only your family's current needs, but also helps secure your family's financial future. When comparing mortgage protection insurance, variations in price are common and significant. As a result, TermAdvantage shops over 2,000 mortgage protection insurance companies with only one goal in mind - to find mortgage protection insurance that is perfectly tailored to our clients' needs and budget. For any homeowner who has a spouse, child, or life partner, purchasing mortgage protection insurance is a decision of great importance and value. Therefore, TermAdvantage will shop and find you the best-priced mortgage protection insurance available provided by the most financially stable & secure (rated A or higher by AMBest.com) mortgage protection insurance companies in the country.
About The Author:
Robert H. Harding is the owner of TermAdvantage Insurance Services, Inc. TermAdvantage is dedicated to providing consumers with the premier marketplace for shopping and buying a mortgage insurance policy on-line. They provide a no-pressure buying experience that allows consumers to compare mortgage insurance rates side by side, evaluate different mortgage insurance companies, assess their needs and budget, retrieve saved quotes, check the status of their policy throughout the application process, monitor or make changes to their policy once it is in force, access the claims department, and pay their mortgage insurance premiums to all companies on-line from the privacy of their home or office 24/7. TermAdvantage's mortgage insurance quotes are not only fast, but accurate, so there are no surprises once the underwriting process has been completed.