Mortgage Protection

Mortgage Protection plans have been around for many years. Historically offered by the issuing mortgage company the policy was designed to simply pay off the mortgage if the homeowner died during the term of the mortgage.

Over the years, independent insurers have designed more competitive and beneficial mortgage protection plans. These policies now offer protection from every scenario a homeowner could experience during the term of their mortgage.

First of all the policy is not tied to the mortgage. This sounds bad for a mortgage protection plan, but in all actuality it is better for the policyholder. For example, if the policy is tied to the mortgage then it will only pay off the balance of the mortgage at the time of the policyholder's death and if the home is sold the mortgage protection plan ends. If the policy is instead tied to the person, then the policy pays a set face amount for a set period of time so if the policyholder moves during the term of the policy the homeowner is still covered. So, if an individual purchased a $250,000.00 home and took out a 30 year mortgage and took out a mortgage protection policy through Summit Capital., the policyholder would be protected for the full $250,000 for the full term of the mortgage (30 Years). If only $100,000 was owed on the mortgage at the time of death the homeowner's beneficiary would receive the full $250,000 giving them plenty to pay off the mortgage and added funds to do with as needed. 

THE BEST PART is that if the homeowner lives through the term of their mortgage protection plan then they will receive a 100% return of all premiums paid for the policy. For example, if a husband and wife each purchase a mortgage protection plan and pay premiums of $150 per month and live through the term of their mortgage they would receive a lump sum return of premium check in the amount of $54,000.00. This is more than the average 401k in the United States for people reaching age 591/2 in the year 2005.

Mortgage Protection plans also provide additional riders to protect homeowners from loss of job, critical illness, and disability. If you would like to learn more about protecting your loved ones with a Mortgage Protection plan through our partner, Cornerstone Assurance Group please email us at info@scssite.net or call our corporate office at 847.615.9333.