Best Mortgage Protection Insurance in 2021. Before we dive into the main topic, what exactly is a Mortgage Protection Insurance Company?
Mortgage Protection Insurance is a policy that pays off the balance of your mortgage should in case you are no more and this is often sold through banks and mortgage lenders as well.
The main reasons why lenders so much like mortgage life insurance are simply because they are the ones who get paid when you are no more. And the death benefit of a normal life insurance policy goes to the beneficiaries you pick yourself.
However, with a mortgage life insurance policy, the beneficiary is the lender, which will w3ill now get the remaining balance of your mortgage.
And this simply means that your family benefits indirectly only! Let us assume you owe some certain amount on your mortgage, the mortgage protection policy will pay it off and the property will now be mortgage-free.
However, your family won’t have any say in how the money was being spent.
Is Mortgage Protection Insurance Required?
Though, Mortgage Protection Insurance is required. And it is not the same as Private Mortgage Insurance, which so many banks or lenders will need you to buy.
Moreover, the terminology and the acronyms make it very easy to mix both products up:
Mortgage Protection Insurance (MPI)
This is a type of credit life insurance. And this means you arent not required to buy it. In all, it pays the lender instead of the beneficiaries you pick.
Private Mortgage Insurance (PMI)
Private mortgage insurance is a different product on its own. Here, your lender can require you to buy private mortgage insurance if your down payment is less than 20 percent.
Mortgage Protection Insurance
Mortgage protection insurance is a type of policy that covers the balance of your home loan should in case you pass away.
Most of the Mortgage protection insurance policies have got declining balances. And this literally means that the coverage amount decreases as you pay off your mortgage, with terms of 30 years or less.
Unlike traditional insurance, where your lender will et the proceeds from your policy upon your inexistence, and which will be used to pay off the balance of your mortgage.
Moreover, for those in good health, a traditional life insurance product just like a term life insurance policy is practically the best for mortgage protection.
But if you have poor health or you are a military service member or a veteran with a disqualifying ability, then the mortgage protection insurance might just be the best for you.
Best Mortgage Protection Insurance for 2021
Here, we have looked into some of the mortgage protection insurance companies and we have selected some of the best for you. They include:
Haven Life
You are looking to protect your mortgage and your loved ones too with life insurance, then why not go for Haven Life?
Haven Life has a completely-online buying process which provides million in quick coverage without the need for a medical exam for some. Also, it adds valuable features at no extra charge or cost.
Global Life
Why we picked the global Life is the fact that it does not require any medical exam or ask any health questions. And this simply means that even those with health conditions can as well get coverage close to $350,000.
Also, it has a long history of operations and standard life insurance policies. However, what you might not like about this mortgage protection insurance is the fact that:
- No specific discounts are advertised.
- Average pricing is unavailable.
- Also, You must apply with an agent.
New York Life
New York Life is also among the best mortgage protection insurance company.
What we love about New York Life is the fact that it offers multiple life insurance policies. Not excluding, whole life, term, and universal life as well which can be customized to fit different kinds of mortgage protection needs.
- Though, what you might not like about New York Life is the fact that it:
- Average pricing is not available.
- Must apply with an agent.
- And no specific discounts are advertised.
Mutual of Omaha
Mutual of Obama is also among the best mortgage protection insurance companies. This Mortage Protection Insurance company was founded in 1909 and it has its headquarter in Omaha, Nebraska.
Mutual of Omaha has got a superior A+ financial strength rating from AM Best. Here, you will be paying the least for a term life insurance policy. Other great options also include a simplified underwritten whole life policy for more protection.
Or a guaranteed issue.
Though, what you might not like about the company is the fact that:
- No specific discounts are advertised.
- You must apply online or apply with an agent to find out how much it possibly will cost.
- The average pricing is unavailable and
- The limits for the entire life policies for seniors are low at $40,000 or even less.
Global Life
Global Life is also one of the best mortgage protection insurance companies and it doesn’t require any medical exam and doesn’t ask any health questions as well. and this simply means that those with health conditions can receive coverage close to $350,000.