New Policy Outshine Reasons Not To Buy Mortgage Protection Insurance

Written By : BenaVest

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July 20, 2017

Everywhere tells people that Mortgage Protection Insurance isn’t a good investment. They’re talking about the old-fashion plans. We have the new plans.

Outdated Mortgage Protection

Let’s start with the reason Mortgage protection Insurance used to be a bad investment. The old-fashioned design for mortgage protection usually came in two forms…

Form 1: This policy starts with the full value of a mortgage and simply decreased as one slowly pays off the mortgage

Problem with this: Although this makes the most sense (“hmm… my coverage amount will always equal my mortgage. If I die, the house is paid off!”), it’s VERY expensive. As the policy’s payout decreases with your mortgage payments, your PREMIUMS get HIGHER as you age in most cases.

Form 2: A 30-year term policy with benefits that never decrease, and premiums that never increase

Problem with this: At first glance, this may seem like a no-brainer! It’s way better than the first policy, and it may cover your mortgage and MORE if you pass. That’s a good thing right?

  • it’s cheaper
  • your premiums stay level for a longer term
  • death benefits don’t decrease

It’s a major upgrade compared to the first type of Mortgage policy, and was a great plan for plenty of years! But not anymore…

Here’s the problem:

  • As shown in the graph, you end up paying for coverage you don’t necessarily need in the long run.

“But wait… More is always better than less right?”

yes… and we will get to that later!

  • It’s MORE EXPENSIVE than the new Mortgage Protection policy we have here below.

GET QUICK COVERAGE WITH LOCAL LIFE PRO

mortgage protection insurance

New And Improved Mortgage Protection Insurance

The Difference

Affordable Term Policies
This mortgage protection insurance plan is completely affordable with terms ranging from 5 to 30 years, giving consumers a lot of options. These term policies are cheaper than both the aforementioned policies.
Additional Death Benefit
With the free Accidental Death Benefit Rider, you can recieve an additional 25% in death benefits if an accidental injury occurs.
No Medical Exam Required
Unlike other policies, you can answer just a few simple health questions and gain access to your new Mortgage Protection Insurance policy within days. No bloodwork, no medical exam required
The Policy Is Portable
If you move and get a new mortgage, the policy can be adjusted for your new house
Tax-Free Money
Money is tax-free for all your beneficiaries.

The Result

Consumers of the new policy can expect a more complex plan, rather than the “one-size-fits-all” method. While it is a mortgage-based life insurance plan, the policy atacks many angles in an affordable manner. 

With the new mortgage protection insurance policy, you can expect:

Death benefits being paid directly to beneficiaries.

Accidental death benefit rider coverage.

Optional additional monthly income payment.

Disability Income coverage.

Cash if critically ill.

Unemployment coverage.

Optional spousal Coverage.

Optional coverage for your children.

For more information about the new mortgage protection insurance plan, you can always….

or

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