do you need mortgage protection

A bunch of insurance companies will be included in the pile telling you that you need to protect your mortgage with a "mortgage protection insurance" policy. There's usually some appeal to a mortgage holder to help their family stay in the home if they were to die suddenly.

Most of the offers you receive in the mail have a postage-paid response card enclosed. Life agents know they will receive a response rate of approximately 2% to 3%. The next step is to call you and schedule an appointment. Be very careful here. Most mortgage life agents are trained to sell you in one visit. It's called the "one-call close." Be prepared for a compelling presentation. However, insist that the agent leaves the quote with you. Take time to compare it to your other options. Tell them this is a big decision and you need time to shop and consider other companies.

Mortgage life insurance costs more than guaranteed level term insurance. It's typically sold as a "Non-Medical" product. Non-medical means you are not required to have a physical exam (including blood and urine samples) to qualify for coverage. The application process is simplified. It is quick and easy, asking a limited number of health questions. Mortgage Life Insurance is generally sold with only two classifications: Standard Tobacco and Non-tobacco.

Let's suppose you have an outstanding mortgage of $250,000. The mortgage protection policy will typically provide you with $250,000 of term life insurance throughout your mortgage. If you pass away, your family members can repay the mortgage and remain in the house. Sometimes, they're designed so that the policy reduces in value as time passes (as you pay off the mortgage).

Making sure that your family members are financially supported if you pass away prematurely or are disabled is essential. This is the bigger picture.

Scammers may use data from public sources to reach potential victims, such as in the example below. Scammers might want to take your cash, but a lot are also searching for your data to steal your identity, which means more than your money is at risk.