How Mortgage Protection Insurance Works

How Mortgage Protection Insurance Helps

Northeastern Pennsylvania Families Avoid Foreclosure

The plight of the housing market and recessionary economy

are putting more people at risk of losing their homes, which

makes mortgage protection insurance more important than ever

Northeastern Pennsylvania, not unlike many other areas across the county, has its share of people losing their homes due to foreclosure because they can no longer afford the mortgage payments.  The reasons for this stem mostly from the loss of jobs and loss of income due to a critical accident or a death.  Families in PA counties like Wayne, Pike, and Lackawanna have been especially hard hit.

Times like these make mortgage protection insurance more important than ever.  Families need to protect themselves from catastrophic events that cause income to cease.  A life insurance policy on the breadwinner to cover the home mortgage in the event of death or total disability can protect them from losing their house.

Mortgage protection insurance in Pennsylvania consists of a term life insurance policy in the amount of the mortgage balance.  In the event of the insured’s death, the proceeds from the insurance policy is used to pay off the mortgage debt so that the surviving family gets to own the house free of a mortgage.  Some policies offer a decreasing term, which means that the payoff on the insurance decreases as the balance of the mortgage decreases from continued monthly mortgage payments.

An added feature of mortgage protection insurance is the job-loss rider.  This add-on to your life insurance policy will pay your monthly mortgage payments while you are unemployed due to a layoff, injury, or other cause as stipulated in the insurance policy.  In small towns like Honesdale, PA, Hawley, PA, and even larger cities like Scranton, PA a number of businesses and industries have had to cut their payroll and many people are out of work with few prospects.

The cost of mortgage protection insurance is low and the coverage large in comparison to other types of insurance policies.  This makes term life insurance a prudent choice for ensuring that your family gets to keep their home in case your income stops because you die or you are incapable of working.  Contact a Scranton or Honesdale, PA insurance agent to find out more about protecting your family’s future if you are not around anymore to provide for them.  After all, they are counting on you.  You will have peace of mind knowing that you have done the right thing.