Your Mortgage Protection Insurance Guide

Replacement Mortgage Protection Insurance

If you already have mortgage insurance, it might be tempting to just ignore all of the new offers you receive in the mail or see online. Sometimes, though, it’s a good idea to replace mortgage protection insurance coverage. This article will tell you when to replace your coverage and when to keep it.

The most important thing is to have mortgage protection coverage, to begin with. If you don’t have mortgage protection insurance and die unexpectedly, your family could lose the home.

We help people replace expensive mortgage protection policies with more affordable alternatives. While the most important thing is to have mortgage protection insurance in the first place, it’s also crucial to get the best prices on your plan.


Did You Get the Best Price for Your Policy?

Some people who purchase mortgage protection insurance wind up with plans that charge them too much money, both monthly and over the loan’s term. Some homeowners replace their policies when they realize how much less it’s possible to pay. Others have unrelated reasons for switching to a different mortgage protection insurance provider. On the whole, these reasons can include:
Paying Too Much

Many homeowners buy mortgage protection insurance policies after receiving letters in the mail about how important they are. Mortgage protection agents may also call, or even visit the home. These options all tend to be more expensive than necessary, especially for healthy adults.


Only One Option Was Available

Homeowners rely on their salesmen’s expertise to figure out the best deals. If your salesman only introduced the most expensive option, you might be paying too much for mortgage protection insurance. We’ll never offer you overpriced policies.


Homeowners Weren’t Educated on Options

The typical mortgage protection insurance agent is licensed with between one and four companies and only sells these companies’ products. There are dozens of mortgage protection insurance providers out there, and we work with over 40 of them to get homeowners the best deals, often with no medical exam required.


One Size Fits All Policies

One size fits all policies allow people with multiple health impairments to get approved. If you’re not overweight and don’t have multiple health problems and you’ve signed up for one of these policies, you’re likely paying too much.


Moving or Refinancing Leads to Lost Coverage

Older mortgage protection insurance policies often had premiums that remained the same over the term of the mortgage but coverage amounts that declined as the balance declined. If you had one of these policies and sold your home or refinanced, it has already been terminated. The good news is that newer mortgage protection plans are transferable between properties.


Initial Confusion Regarding Private Mortgage Insurance vs. Mortgage Protection Insurance

Private mortgage insurance (PMI) is a type of policy homeowners must purchase if they put down 20% or less on their homes, and its cost is included in your mortgage payments. Unfortunately, PMI protects banks, not homeowners, so it’s important not to get PMI and MPI confused. If you only have PMI, it’s time to consider a mortgage protection plan.


Downsizing to a Smaller Home

If you’ve recently downsized to a smaller home that carries a lower mortgage balance, it may be wise to replace your plan. However, this step won’t always save you money, so run the numbers first or contact us for help. We’ll run the numbers for you and let you know if it makes sense to take out a new plan.


Upsizing to a Larger Home

When upsizing to a new home, it always makes sense to switch mortgage protection insurance policies to get extra coverage. A second option for older Americans who don’t want to give up their low rates is to keep the initial plan but also take out a new one that covers additional liabilities.


Being Sold an Accidental Death Policy Instead of a Mortgage Protection Policy

Accidental death policies only pay off mortgages if people die accidentally. They don’t cover deaths related to illness, but mortgage protection insurance does.


Not Enough Time to Have Someone Visit the Home

Most mortgage protection insurance agents perform home visits, and not all homeowners are interested in doing that. As a result, some people wind up with less-than-ideal mortgage protection policies.


Lack of Understanding that $25-50 per Month Adds Up

Assuming that saving $25 to $50 a month won’t make that much of a difference? It can help you save up to $12,000 over the course of a 30-year policy term, and it only takes around an hour to get approved for a new policy.


Lack of Trust in Mortgage Protection Insurance Salesmen

Some insurance salesmen are just out to make a quick buck. They may have overcharged you for your policy. We can help you replace that expensive policy with one that offers fair rates.


Too Busy

It used to take hours to explore options and take out a new mortgage protection insurance policy. We’ve made the process much easier for busy homeowners by eliminating home visits and exams and reaching out to our clients on their terms.