Why You Need Mortgage Protection Insurance & How to Choose Yours

When you become a homeowner, chances are that you’ll also become committed to long, long mortgage payments. Usually, the mortgage deal you get can span over decades, and sometimes it can even become a life-long commitment.

While it’s the perfect option, and possibly the only one, for actually buying a home and finally becoming a homeowner in this hectic economy, this deal comes with certain risks of its own.

Tell me, what happens if you suddenly lose your job and you still have decades of mortgage payments? This is a really stressful situation and there’s no doubt that you will find yourself thinking how hopeless your circumstances are and how getting yourself out of this pickle is probably rather difficult and sometimes even next to impossible.

While I believe that people can get themselves out of anything if they’re determined enough, I also believe that there are things that need to be thought of in advance.

This is one of those things. If there is any scenario in which the statement that “prevention is better than the cure” couldn’t be truer, then it is this one. Of course, I’m not saying that it’s the only scenario, but it’s definitely among the more important ones.

While prevention is pretty easy, finding the actual cure can be rather difficult. That’s why it’s much better to avoid a situation like that than to try and get out of it if it happens.

Since you can prevent the whole thing from happening, you have no one to blame if it happens but yourself. If you don’t worry to carry that burden of blame on your shoulders, you should do everything you can to protect and insure yourself.

Luckily, there is an easy way to do that. By making a quick visit to https://low.ie/mortgage-protection-insurance, you’ll get acquainted with the option I’m talking about.

We’ll take a look at that option in this article, while also trying to explain why you might need it and how to choose the perfect one for you.

In case you’re a bit confused with what I’m talking about, let me make things a bit clearer. You can prevent the above stressful scenario by getting mortgage protection insurance (MPI). Let us first take a look at what it is.


What Is Mortgage Protection Insurance (MPI)?

While some owners might regard this as an unnecessary expense, most think of it as a safety net when they get a mortgage. Basically, it functions as a type of disability or life insurance.

It protects homeowners if they develop a health issue or lose their job. Even though it’s not so nice to think about it, this type of insurance protects you even in the worst-case scenario. In other words, the mortgage can be paid off even if the homeowner passes away.

That’s a rather important thing since it means that no heirs will be burdened with the debt, nor will they be at risk of losing their home.

homeowners are worried about this scenario, especially after reaching a certain age. Nobody wants to be guilty of leaving their family in debt, which is why mortgage protection insurance is a great option for everyone involved. It’s a way to protect both your future and the future of your family.

The whole principle is rather simple. You pay a monthly premium which is later used to pay off the debt should anything unexpected happen. The premium, of course, varies and it depends on several different things.

Those include your age, your health condition, as well as the amount of the actual loan. Depending on the policy of the insurance, there might be a waiting period before payments are made and you should be acquainted with that before you sign any agreements.

There are three main types of mortgage protection insurance policies and they cover different things. Unemployment policy covers your payments if you cannot work due to redundancy.

Then, there are accident and sickness policies that will cover you if you fall seriously ill, or get injured. Finally, there are combined policies that cover both of these things.

As you might have guessed, not every insurance provider is the same either. That’s why you’ll need to spend some time searching for the right one, but we’ll get to that later. Before we do that, we need to make the reasons why you need this insurance a bit clearer.

That’s what we are focusing on right now, but if you are still a bit confused about what mortgage protection insurance is, I suggest you get some additional info and learn more about it.


Why Do You Need It?

The first thing you need to understand is that mortgage protection insurance isn’t compulsory. That means that you can very well stop reading this article right now if you believe that you don’t need it.

Still, the fact that you have found your way here tells me that you have been thinking about this option, but that you aren’t yet sure whether it is the right option for you or not.

That’s why I advise you not to give up on the idea before you get your facts straight. So, keep on reading to figure out if this is the right option for you or not.

There are a lot of reasons why you should think of investing in this product and all of those are in one way or another connected to your and your family’s financial well-being.

This option has become rather popular in recent years, which only goes to show that it’s bringing a lot of benefits to the table. Let us now take a look at some of the reasons why people are increasingly buying mortgage protection insurance, so that you decide whether you need it too.


It Protects Your Home

In today’s economy, people are struggling to become homeowners.

Let’s face it, this is not an easy thing to do. We all know how much effort it takes to even get a loan approved and the fact that you are getting committed to a decade-long mortgage speaks in favor of the fact that becoming a homeowner is something that you constantly have to work for.

For this reason, and many other reasons, it’s safe to say that your home is your most valuable asset.

How would you like to lose it one day? I suppose that’s the last thing you want and even only thinking about it is probably painful to you. It would definitely be a painful experience for everybody.

Getting mortgage protection insurance will put your mind at ease by helping you make sure that this never happens, no matter what life brings about. We all know that life has a way of bringing about unexpected and unpleasant things and it’s much better to be safe than sorry.


It Protects Your Family

If something happens to you and your family is left on a really low-income, they’ll have to struggle to pay off the mortgage while neglecting all other parts of their lives.

In some cases, they might even struggle to make ends meet, which will drastically decrease their quality of life and their general well-being. Sure, you could argue that your life insurance might cover some of the expenses, but the truth is that it most likely won’t be enough.

Whole life insurance is there to keep your family on track if something happens to you, it’s designed to cover a lot of different parts of their lives and if they spend it all on paying off the mortgage, they might be left with very little to cope with.

On the other hand, mortgage protection insurance is designed specifically to cover the mortgage, which means that your family will get to use the life insurance on all the other important aspects.

When you think about it this way, this means that your family won’t need to worry about the mortgage at all. What’s more important, they won’t find themselves worrying about losing their home.


It Works For You And Not The Lender

This whole concept is often confused with a different one, called private mortgage insurance (PMI). The truth is that these two things work in entirely different ways.

While PMI is there to protect the lender should anything happen to you, MPI is there to protect nobody but you and your family.

This is a pretty important thing to think about since, although you don’t want to put the lender in an uncomfortable situation, you are far more likely to worry about yourself and your family than about the person that granted you the loan.


How Can You Find The Right One For You?

Now, as I have briefly mentioned above, you can find a lot of different providers on the market and they’ll all claim to have the absolute best offer for you.

I’m not saying that somebody will try to trick you and I think that all of them genuinely believe that their offers are perfect. Still, you are the one responsible for figuring out what works best for you and the key to doing that doesn’t lie in listening to anyone’s sales pitch.

The key is in doing a couple of important things.


Figure Out What You Need

For starters, you’ll need to figure out exactly what it is you need and want. If you remember correctly, I have briefly mentioned the types of MPI you can find and get, and figuring out which one you want should be your first step.

Whether you want to get protected against job loss or accidents, or both, will have a huge impact on choosing the right provider for you. So, before you go any further, make sure that you know exactly what you want and need.


Search For Providers Online

After having figured out what it is you need and want, it’s time to start searching. You could perhaps talk to the people around you and they could share a few valuable tips, but the truth is that you’ll always turn to the internet for help, even if the tips you get from them are amazing.

Fact-checking is always the right thing to do. Anyway, what you’ll need to do is start searching for providers online.

You’ll quickly see just how many options you will be presented with. Start narrowing down those options by checking out the websites and eliminating any candidates that don’t seem to be right to you.

Make sure to inspect the websites thoroughly, checking out all the services that the particular provider offers. Read through those services and take note of every provider that seems good to you, because you’ll be researching them further in the next step.


Check Their Reputation

It would be a bit irresponsible and reckless to work with people that nobody has ever heard of. This doesn’t mean that your best friend needs to have heard about a particular provider.

It simply means that there have to be clients who used their services before you. Those clients will actually be of huge help since they are bound to rate and evaluate the services they received and those evaluations will help you determine the reputation of specific providers.

The best way to check and determine reputation is by checking those ratings and reading any reviews that previous clients might have left.

If you dig deep enough, you’ll definitely be able to find enough reviews to get a clear and objective picture of a particular provider. That picture will definitely come in handy in the process of making your final decision.

In conclusion, mortgage protection insurance is not a necessary expense, but it is definitely one that you could use, especially if you want to make sure that you, your home, and your family are all protected in case something unexpected happens.

Your responsibility is to find the perfect provider and leave the rest up to the professionals. Although it’s an additional financial burden, it’s the one that actually works towards protecting you.

Similar Posts