Mortgage Payment Protection Insurance
Mortgage Payment Protection Insurance is an affordable insurance policy that protects your monthly mortgage payments in case you unexpectedly lose your job. This premium-free, often overlooked protection plan covers your home loan savings for up to 12 months or the value of the house, whichever is greater.
Mortgage Payment Protection Insurance can provide peace of mind when you are uncertain about having enough money saved up at any moment to maintain your mortgage. It only takes a few minutes to apply and could save you from potential financial stress on a large scale should you find yourself unemployed or without sufficient funds in retirement.
Even if you choose not to purchase a Mortgage Payment Protection Insurance policy, there are other benefits to consider. Financial institutions that offer MMPI offer annual savings of 10% to 15%, depending on your mortgage, and may even require that you maintain a certain level of savings per month.
The best way to learn more about Mortgage Payment Protection Insurance is by reviewing each company's policy documents. Providers are also required to put all their policies through a thorough review process, and each policy must be reviewed by the Federal Trade Commission. Policies must also be registered with the National Association of Insurance Commissioners (NAIC) .
Insurance companies that provide MMPI may charge higher rates based on one's credit rating. This could be a major concern for those with poor credit or who have not provided much documentation of their income, but the policies are well worth the risk when considering the potential savings and peace of mind that such coverage provides.
Mortgage Payment Protection Insurance is tailored to both new and existing customers and only covers principal in a predetermined amount. There are two different types of plans: Primary Mortgage Payment Protection Insurance, which covers up to $250,000, or Secondary Mortgage Payment Protection Insurance, which covers up to $100,000. The coverage continues for up to 12 months and may result in a reduction in monthly expenses by 10% or more.
Mortgage Payment Protection Insurance is customized per individual rather than companywide. Each provider uses a special underwriting process that includes online applications, pre-qualification, the screening of credit, and the acquisition of information regarding other payments like alimony and child support.
Mortgage Payment Protection Insurance can be purchased alongside one's current mortgage or used as an addition to any existing loan to improve financial stability. The policies are not mutually exclusive but rather can be purchased alongside each other at no additional cost. MMPI is often designed to replace a new mortgage or existing home improvement loans.
Mortgage Payment Protection Insurance can be purchased at any time but some providers may require that payments be made on the policy for 3 months before activating coverage. This does not apply to Secondary Mortgage Payment Protection Insurance. In the case of Primary Mortgage Payment Coverage, rates are set while adding the policy to a loan, rather than after purchase, therefore it is less expensive to add coverage later on.
Credit scores can also affect premium rates. The higher your score, the lower your premiums will be and vice versa. Those with a credit score of less than 680 will pay increased rates or are ineligible for coverage.
Primary Mortgage Payment Protection Insurance covers your monthly mortgage payments in case you lose your job, are disabled or become seriously ill. This premium-free, often overlooked protection plan covers your home loan savings for up to 12 months or the value of the house, whichever is greater.
Mortgage Payment Protection Insurance can provide peace of mind when you are uncertain about having enough money saved up at any moment to maintain your mortgage. It only takes a few minutes to apply and could save you from potential financial stress on a large scale should you find yourself unemployed or without sufficient funds in retirement.
Even if you choose not to purchase a Mortgage Payment Protection Insurance policy, there are other benefits to consider. Financial institutions that offer MMPI offer annual savings of 10% to 15%, depending on your mortgage, and may even require that you maintain a certain level of savings per month.
The best way to learn more about Mortgage Payment Protection Insurance is by reviewing each company's policy documents. Providers are also required to put all their policies through a thorough review process, and each policy must be reviewed by the Federal Trade Commission. Policies must also be registered with the National Association of Insurance Commissioners (NAIC) .
Insurance companies that provide MMPI may charge higher rates based on one's credit rating. This could be a major concern for those with poor credit or who have not provided much documentation of their income, but the policies are well worth the risk when considering the potential savings and peace of mind that such coverage provides.
Mortgage Payment Protection Insurance is tailored to both new and existing customers and only covers principal in a predetermined amount. There are two different types of plans: Primary Mortgage Payment Protection Insurance, which covers up to $250,000, or Secondary Mortgage Payment Protection Insurance, which covers up to $100,000. The coverage continues for up to 12 months and may result in a reduction in monthly expenses by 10% or more.
Mortgage Payment Protection Insurance is customized per individual rather than companywide. Each provider uses a special underwriting process that includes online applications, pre-qualification, the screening of credit, and the acquisition of information regarding other payments like alimony and child support.
Mortgage Payment Protection Insurance can be purchased alongside one's current mortgage or used as an addition to any existing loan to improve financial stability. The policies are not mutually exclusive but rather can be purchased alongside each other at no additional cost. MMPI is often designed to replace a new mortgage or existing home improvement loans.
Mortgage Payment Protection Insurance can be purchased at any time but some providers may require that payments be made on the policy for 3 months before activating coverage. This does not apply to Secondary Mortgage Payment Protection Insurance. In the case of Primary Mortgage Payment Coverage, rates are set while adding the policy to a loan, rather than after purchase, therefore it is less expensive to add coverage later on.
Credit scores can also affect premium rates. The higher your score, the lower your premiums will be and vice versa. Those with a credit score of less than 680 will pay increased rates or are ineligible for coverage.
Primary Mortgage Payment Protection Insurance covers your monthly mortgage payments in case you lose your job, are disabled or become seriously ill. This premium-free, often overlooked protection plan covers your home loan savings for up to 12 months or the value of the house, whichever is greater.
Conclusion
Mortgage Payment Protection Insurance can provide peace of mind when you are uncertain about having enough money saved up at any moment to maintain your mortgage. It only takes a few minutes to apply and could save you from potential financial stress on a large scale should you find yourself unemployed or without sufficient funds in retirement.
Saving for a home is difficult enough, but what if that home were financed through your current employer? With the right type of insurance, the monthly payments would be covered in case of illness, disability, or even death. Adding Mortgage Payment Protection Insurance to your mortgage shortens the time frame during which the home will be left unoccupied and results in added savings without requiring additional funding for repairs.