An often over-looked piece of purchasing a new home or investment property is mortgage protection. Not to be confused with homeowner’s insurance, which covers losses and damages to an individual's house and to assets in the home, mortgage protection is insurance to keep mortgage payments ongoing if you were to die or become disabled.
There are two cost-effective ways to gain mortgage protection: Life and Disability Income Insurance.
Life Insurance – In the event you pass away, the tax-free death benefit from life insurance can pay off the mortgage completely, so your heirs - be it a spouse, children, or other benefactors of your estate – don’t have to take over the loan, refinance, or in the worst case, sell the home.
Disability Income Insurance* – In the event you became disabled – either you are too ill or physically-impaired to do the work that was earning you income – you can receive payments to continue paying your bills, including mortgage payments. Like life insurance, disability income insurance prevents refinancing or selling the home.
If something were to happen to you, what strategies do you have in place to protect your largest asset, your home?
If interested in learning more about mortgage protection and how to protect your home, contact the following:
*Disability Income Insurance is available through one or more carriers not affiliated with New York Life, dependent on carrier authorization and product availability in your state or locality.
Samuel E. Strum is a native Texan and graduate of the University of Texas at Austin. He currently lives in New York, New York and works as an Agent at the New York Life Insurance Company.
**Visio Lending Editor's Note: This article is targeted to your primary residence, but can apply to investment properties as well. Contact Samuel E. Strum or your personal advisor to learn more about mortgage protection for your investment properties.
Disclaimer: The information in this blog has been prepared solely for informational purposes. The contents are based upon or derived from information generally believed to be reliable although Visio Lending accepts no liability with regard to the user's reliance on it. For legal advice, please contact your counsel.