A Sacramento mortgage lender's vision

Mortgage Protection Life Insurance is a big topic now. The economy is in a bit of a rut and the topic of financial security gets thrown around a lot these days. But what exactly, is Mortgage Protection Life Insurance- or Mortgage Life as it is sometimes called? For that, you can read our page here. Today, we're going to tell you what Mortgage Life is not.

The top 7 myths about Mortgage Protection Life Insurance:

1. Myth: Mortgage Protection Life Insurance is just life insurance. Fact: There are key differences. Yes it's a life insurance policy in that it pays out upon passing of the policy holder-but it pays off the entire mortgage.
2. Myth: I already have life insurance- can't get/don't need Mortgage Life. Fact: You can have your cake and eat it, too. A mortgage life policy can close key holes in your traditional policy coverage.
3. Myth: My traditional life insurance policy covers my home. Fact: Most life insurance policies DO NOT cover the loan balance. Probate/estate legal messes can make it hard on the family to deal with real estate. Mortgage life insurance makes it simple.
4. Myth: I already pay Mortgage Insurance(PMI)- that's the same thing. Fact: PMI is NOT Mortgage Protection Life Insurance! PMI only pays your lender if you stop making payments- it does nothing for you.
5. Myth: I have insurance which pays my mortgage if I lose my job- that's the same thing. Fact: It's not- those policies are called "Mortgage Protection Insurance", they only cover a few months of payments and not your loan balance.
6. Myth: I got Title Insurance, PMI, Home insurance and a home warranty when I bought my home- why something extra? Fact: All these insurance coverages are for specific purposes- and most don't even benefit you or your family
7. Myth: There is only one type of Mortgage Life Insurance. Fact: There are several, including Decreasing Term and Level Term. The idea of Mortgage life insurance may seem complicated, but it can fit your exact situation.

We hope this clears up some of the common misconceptions. If you are still unsure about your situation or need more information, feel free to call us at 916-729-2000. You can also read more about Mortgage life insurance on our website.