Mortgage Protection

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Mortgage Protection

One of the major investments in life is your home. If others depend on your income to make the mortgage payment, GPM Health and Life offers mortgage protection to help ensure your loved ones can stay in your family home.

Basic Insurance Coverage

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Using Life Insurance to Payoff a Home Mortgage

Proper planning for mortgage protection could help avoid financial devastation. Term life insurance may be the perfect solution if you still owe on your home mortgage. It is designed as affordable coverage for a specified period of time.

Here’s how it works: say you have 5 to 30 years left on your home mortgage. First, you purchase a term life insurance policy for the same period or a longer period of time and for the amount still owed on your mortgage. Then, if you should die unexpectedly during the “term” the policy is in force, your love ones receive the benefit of the policy purchased. The proceeds from the life insurance policy will help pay off the home mortgage, making this one less thing for your loved ones to worry about during a difficult time. Permanent insurance can also be used in mortgage protection. If you outlive your mortgage, permanent insurance can provide cash value options and continuing life insurance protection.

Not only can the proceeds help pay the mortgage, but the money can be used for any purpose your loved ones choose. For example, they may want to pay off a high interest credit card debt or a new car loan, or use it for their living expenses while they are going through a difficult time. Life insurance benefits are usually tax free and the beneficiary chooses how the money will be used.

 

 

Questions to ask yourself... if I died today:

  • Would my loved ones be able to stay in their current home?
  • How will the mortgage and other living expenses be paid?
  • Does your spouse have income? If so, is it sufficient to pay the daily expenses?

Note: This discussion covers the type of insurance that will pay off your mortgage balance in the event of your death should your beneficiary decide to use the proceeds for the mortgage. This should not to be confused with mortgage protection insurance which covers your mortgage payments in the event you are unemployed, sick or injured.

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