YOU ASK:

Is mortgage protection insurance worth it?

WE ANSWER:

Some form of insurance coverage to protect your mortgage is always worth it. However, the question of whether mortgage protection is the best answer for your needs depends on your specific situation.

The best thing you can do is to ask around and to ask your insurance agent about products that will fit you.

Having said that, mortgage protection insurance (or a similar insurance protection) will prove to be very useful in protecting your real estate investment against forfeiture. This kind of insurance will pay for the monthly mortgage payments (or a percentage of it) in the event that you die, meet a serious accident, becomes unemployed or terminally ill.

When these happen to you, you may not be able to meet your monthly mortgage payments. As a result, you or your family may be faced with the forfeiture of the house or property and you will find yourselves evicted from the home you have bought with your hard-earned money.

Please take note that mortgage protection insurance is not required. It is an optional insurance coverage, but it is something that will protect one of the most important assets you can have - your home.

Mortgage Protection Insurance is well worth it because of the peace of mind you can have knowing that no matter happens to you, your heirs can still continue to enjoy the comforts of your home and not live in fear of eviction. This is especially necessary in these times of uncertainty, where being laid off, made redundant or the company going belly up are things that happen more frequently than ever.

To help you decide if you should get mortgage protection payment, consider the following situations:

  • Possibility of getting fired or laid off, or of resigning from your job and having a hard time finding a replacement job.
  • Present life and health insurance coverage. If you have excellent health insurance and accident insurance, you may need only to cover against your death or against unemployment.
  • Level of savings. Do you have enough savings to cover for the 12 monthly payments. MPPI is usually good until 12 months. If your savings can cover this, there is not much point in getting the coverage.
  • Self- employment: If you are self-employed, you should get MPPI since you don't have an Employee Benefits program to rely on when you become sick or disabled.
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