Buying a home is an exciting time, but there are some specific business details that need to be handled before settling comfortably into your new place. You may have gotten an unbelievable deal on the mortgage price, but what will happen to your family if you get seriously ill, or even worse, you die unexpectedly? Most mortgage companies will try and slide their products at you that help cover the mortgage payments in dire circumstances, but are they the best products out there?

Homeowner's Insurance Versus Mortgage Protection

Many new homeowner's will mistakenly think that the general insurance they acquire to protect the home will somehow cover the mortgage. This could not be further from the truth. A homeowner policy is to protect the property from damage, loss and lawsuit. You will have to get separate coverage for the preservation of home ownership in cases of sickness and death.

Mortgage Lender Insurance Versus Other Products

The protection insurance offered by the mortgage company might seem like a good idea, but there are some features that might show that it is spending more money to receive less value over time. Your payment will remain the same for the duration of your coverage. The problem is you will be paying down the mortgage. What is owed is less and less over time. The coverage will simply dissolve into less and less for the same monthly amount. Getting a term life or critical illness policy will guarantee that the amount of coverage stays the same. Anything over and above what is owed on the mortgage will go to your listed benefactors.

Benefits of Using Resources Outside the Mortgage Company

There may come a time that you want to switch to a different mortgage company. This will present a problem when it comes to the mortgage protection policy. having a policy outside of the mortgage company is a highly recommended feature.

Contact us for all of your mortgage protections needs and concerns. We are here to help protect your largest investment.