Did you know that the number one reason for bankruptcies and foreclosures is unexpected medical bills? Do you need a mortgage protection policy? YES!
Especially if your mortgage protection policy has living benefits.
A mortgage protection policy will help provide money for the bills and other unexpected medical expenses if you were to have a critical illness like cancer, heart attack or stroke.
It could also help if you have a long-term illness that would keep from being able to earn a paycheck,
or a terminal illness that you aren’t expected to live through.
What is a mortgage protection policy? It is a term life insurance policy that you don’t have to die to use. As you know, most life insurance policies simply pay out the benefit after you have passed. There are some that will have a rider or clause that will pay most of the benefit if a doctor certifies that you have less that one year to live.
But, what if you get really sick and don’t die? What if you’re out of work for a couple of months to a year or more? Who’s going to pay the bills if you can’t earn a paycheck?
Could you afford to pay the mortgage, car payments, credit cards, utilities and put food on the table if you lost your income? Most couldn’t. An overwhelming majority (90%) of our nation’s middle-income Americans say they are not financially prepared for a critical illness diagnosis, according to a new study released by Washington National Institute for Wellness Solutions (IWS). Additional info here.
Even with two paychecks in the home, most families need both just to keep a roof over their heads and if you lost your income while you were recovering, how would you survive?
With a mortgage protection policy that has living benefits, you could get part of the death benefit ahead of time. So, how does it work? Let me explain:
Let’s say that you have a 30 year mortgage on your home that is worth $250,000. Since both you and your spouse are on the mortgage, you both need a mortgage protection policy. You would each purchase a 30 year term life insurance policy that has living benefits riders (clauses) on them for the amount of your mortgage ($250,000).
Once the policy is approved, you continue to make payments to the insurance company and if at the end of the 30 years, you are still healthy, your mortgage would be paid off and you would not need the policy any longer.
However, statistics show that by age 65, a high number of people will have a critical illness and many will be on disability. This is where a mortgage protection policy with living benefits really shines. If, during the 30 years you have the policy, you were to suffer from a severe, covered illness, the insurance company would offer you the opportunity to get some money from the policy to help cover those expenses.
For example, you might ask for $50,000 from the policy and if the company agreed, they would send you a check and reduce the death benefit by $70,000. This covers other expenses and charges the company would incur and would leave you with a new death benefit of $180,000. Then, if you were to pass away during the 30 year term, the family would receive the $180,000 tax free as a death benefit.
Why is that important? Think of how much better your recovery would go if you weren’t worried about how you were going to pay the bills. How would you feel if you knew you weren’t going to lose the home! You could focus on what was really important, which is getting healthy and spending time with your family and friends.
The benefit and peace of mind is HUGE! and worth every penny. And since this is a term insurance policy, you know the rates are going to be the same for the entire term and are the most affordable of all life insurance policies.
So how do you get a mortgage protection policy with living benefits? I am glad you asked! Simply go to www.mortgageprotectionwithlivingbenefits.com and put in your email. Then I will send you a video and after watching it, you can schedule a time with me to talk about your particular situation and we will come up with a plan that protects your family the best.
There are certain rules and guidelines and you need to fully understand these as a part of your policy and any examples are only that: an example of how it could work in hypothetical situation. Each situation is different so make sure to speak with your insurance agent to get the specifics of the policy.