If you’re buying a home or condo, you may have heard about mortgage insurance. To get financing to buy the home of your dreams, you may need to get mortgage insurance in case something happens and you can’t make your regular payments on time.

In the event that something catastrophic happens such as death, disability, or loss of work income, it may be hard—if not impossible—to pay your mortgage. Mortgage insurance protects you in these situations by making your payments for you so that you can keep your home. Mortgage protection insurance is often confused with mortgage insurance. They are different things. Let’s take a closer look at both and why you should consider getting them both.

What is mortgage protection insurance?

Mortgage protection insurance is a type of insurance that you can get to protect your mortgage and your family from financial loss when you can’t make your mortgage payments after you’ve become disabled or if you die. It’s also known as mortgage life insurance, mortgage disability insurance, or loss of income insurance. Mortgage protection insurance is generally a type of term life insurance that you purchase to protect your home loan and your family if something happens to you and you cannot make your mortgage payments. You can also use mortgage protection insurance to pay off your mortgage as part of a financial inheritance plan.

What is mortgage insurance?

Mortgage insurance is an insurance premium that protects the lender if you’re unable to make your mortgage payments due to disability or death. Mortgage insurance premiums are usually small compared to the amount of the mortgage, but getting mortgage insurance is usually a requirement for obtaining a mortgage. Mortgage insurance is usually required for conventional mortgages with a down payment of less than 20%.

Why do you need Mortgage Protection Insurance?

Mortgage protection insurance protects you and your family from an unfortunate situation where you’re unable to make your regular mortgage payments due to disability or death. If you and/or your spouse are working, it’s unlikely that you’ll ever have to use this insurance because your regular income can be used to make the payments on time. But if either of you is self-employed or if you’re out of work, this type of insurance can be a lifesaver. Your mortgage protection insurance can help pay off your mortgage if you’re ever disabled or if you die and your spouse can’t make the payments on their own. Your mortgage insurance can also help pay off a home equity line of credit (HELOC) or a home equity loan, or it can pay off other debts.

5 Reasons to Get Mortgage Protection Insurance

- Avoid financial ruin and distress if you’re disabled or you die. - Protect the financial future of your spouse and children. - Protect your home from foreclosure. - Eliminate the need for a home equity line of credit (HELOC). - Provide a financial inheritance for your family.

3 Reasons to get Mortgage Insurance

- Protect your investment. - Avoid foreclosure. - Avoid making monthly payments on a home equity line of credit. - Provide a financial inheritance for your family.

2 Things to remember when you get mortgage protection insurance

- How much coverage do you need? - How long does it last?

Conclusion

Mortgage protection insurance can be a lifesaver if you or your spouse becomes disabled or if one of you dies, or if you need to pay off your mortgage at once. It can also help you avoid the need for a home equity line of credit if you don’t have enough cash in savings. When you’re buying a home, you don’t want to put yourself in a situation where you’ll lose it. That’s why it’s important to get mortgage protection insurance to make sure you’re protected in the event of a misfortune.