For most people, buying a house is the most significant investment of a lifetime. As the cost of housing in Louisiana rises, it makes sense to protect this costly purchase with insurance beyond traditional homeowners insurance. With recent global interruptions and an unpredictable business world, few people are sure of maintaining a completely healthy financial future. Learn more about Louisiana mortgage protection insurance and how it helps homeowners protect this costly asset.
What is Louisiana Mortgage Protection Insurance (MPI)?
Mortgage protection insurance (MPI) is insurance that pays off the mortgage if one of the parties to the loan passes away. Some policies cover mortgage payments for a limited time if a borrower becomes disabled, empowering families to adjust to a new situation and decide about their living situation. Also, MPI differs from private mortgage insurance (PMI), which protects lenders against defaults on loans. As a result, PMI would leave the family with the loan balance if the borrowers passed away.
Guaranteed Approval
Unlike other insurance, one of MPI’s most significant advantages is guaranteed approval. Regardless of health conditions or working in a dangerous profession, there is always guaranteed approval.
Plus, no medical examinations or lab tests are required to get this essential coverage. Thus, unlike life insurance, this coverage is available to everyone to help families survive if the borrower passes away.
Disability Protection
Another benefit of investing in MPI is optional disability protection in case the borrower gets injured or ill. Sometimes disabilities last for months or years, causing the borrower stress trying to meet obligations such as the mortgage on a Louisiana house.
With MPI, specific policies make some mortgage payments if the borrower becomes disabled and loses income. As a result, everyone can enjoy living in their Louisiana house until the situation is resolved or amended.
Easy Payment
Fortunately, there is no confusion or collection with MPI if the borrower passes away and the family needs coverage. In the event of a death, the check is paid to the lender for the exact mortgage balance.
The family never has to handle money, deal with collectors, or worry about paying the mortgage because everything is done for them. As a result, the borrower gives their loved ones peace of mind because they can continue to live in the family home.
More Facts to Know About Louisiana Mortgage Protection Insurance
While there are many advantages of investing in MPI, there are other things to know about this unique coverage. First, these policies typically come at a higher cost than life insurance.
Also, MPI gives the beneficiaries no choice but to pay the mortgage because they never see the money. Finally, as the mortgage balance declines, so does the policy payout, which means paying the same for less coverage over the years.
While there are a few facts about mortgage protection insurance in Louisiana, investing in this policy has many benefits.
For example, when a loved one passes away, the rest of the family struggles to pay the mortgage and maintain housing. With MPI, borrowers ensure their family is cared for no matter what happens in the future.