In Utah, the average home sells for around $400,000 to $500,000 dollars. With that kind of investment, Utah mortgage protection insurance could be a good idea.
Needless to say, most buyers take out mortgages instead of paying that kind of money upfront, which is a great choice financially.
Unfortunately, monthly mortgage payments can also become a huge burden on your family if you pass away unexpectedly without making plans for how they will be covered.
That’s where mortgage protection insurance (MPI) comes in.
When something goes wrong and the breadwinner of a family passes away, their family deserves to have the time to grieve and process all of the difficult emotions that accompany the death of a loved one.
Without MPI, family members won’t be able to take the time they need to determine their options. They’ll be forced to take over the mortgage payments immediately or risk losing the family home.
How MPI can help Utah homeowners
MPI is a form of life insurance, so it kicks in when a policyholder passes away. Unlike term life insurance, though, MPI provides monthly coverage for the family’s mortgage payments.
This gives loved ones the time they need to grieve and process the situation when the family breadwinner passes away instead of having to focus immediately on avoiding financial catastrophe. Some policies also offer limited disability coverage.
MPI is not the same as regular term life insurance, nor is it comparable to private mortgage insurance (PMI), so don’t be fooled by the name. PMI protects your lender, while MPI protects your family.
With PMI alone, your family will need to continue making regular payments against the mortgage if the policyholder passes away. With MPI, they won’t have to worry about it.
MPI comes with a few drawbacks, as well. It’s less flexible than term life insurance but tends to cost more, at least for young, healthy adults. It also provides shrinking coverage as mortgage balances decline, so policyholders will pay the same amount of money for less coverage as their mortgage terms end.
The Pros of Mortgage Protection Insurance in Utah
There’s no reason to choose between MPI and PMI and term life insurance. However, not all Utah homeowners can see why having MPI is so important even if they have other forms of insurance protection. These benefits might change their minds:
Guaranteed Approval
You won’t have to worry about whether you’ll be approved for MPI. Even if you work in a dangerous profession or are in poor health, approval is guaranteed.
There are no medical exams, lab tests, or hoops to jump through.
No Confusion
When MPI coverage kicks in, the insurance provider pays the mortgage bill directly. The family won’t even need to deal with the lender.
Disability Protection
Some policies offer limited disability protection, which can make a big difference for workers who become disabled on the job or elsewhere. The MPI policy will cover a few mortgage payments to give the disabled breadwinner and their family time to investigate options.
Get a Quote for Utah Mortgage Protection Insurance Today
If you’re curious about the cost of mortgage protection insurance in Utah, check out our MPI calculator to learn more. Otherwise, get a free, no obligation quote and see how affordable mortgage life insurance could be for you.