Mortgage Protection Insurance and Bankruptcy

Mortgage Protection Insurance and Bankruptcy

by Lisa Thibodeau, May 23, 2016

Keep your family, your home, and your credit safe.

For many people, buying a home is the realization of the American Dream. A home is our place of security and comfort. Our homes are generally our biggest investment and most important asset. In our home, we are sheltered and safe. That safety can be shattered though, if the unthinkable happens and you unexpectedly die. And this is where the relationship of Mortgage Protection Insurance and bankruptcy comes in.

Mortgage Protection Insurance will keep your family financially safe should you die.

With Mortgage Protection Insurance, if you die, your entire mortgage will be paid off. Your family may also decide to keep making the payments, or just pay a portion of the loan, it’s their choice.

You may know about the devastating effects your family would suffer if they lost their home, but what about the damage to their credit?

Sadly, death and bankruptcy oftentimes go hand-in-hand.

Protect their credit

Is there someone else on your home loan? A spouse? A relative? Without Mortgage Protection Insurance your family may not be able to pay the mortgage should you die. They could not only lose their home, but their credit could be damaged as well. In this case, Mortgage Protection Insurance and bankruptcy are closely linked.

Protect your credit

It may surprise you to know that you can use your Mortgage Protection Insurance while you are still alive! One fact to keep in mind:

One of the most common reasons people file bankruptcy is due to medical bills.

Mortgage Protection Insurance can be used while you are still alive using your living benefits. You can take advantage of these benefits – to prevent a medical or disability-induced bankruptcy – with the help of riders.

In addition to your Mortgage Protection Insurance, you can get add-on insurance riders, like Critical Illness Insurance or Disability Insurance. These riders play an important role in avoiding bankruptcy.

Critical Illness Insurance provides much needed funds if you are diagnosed with a heart attack, stroke, cancer or other life-threatening diagnosis. Disability Insurance can help pay your mortgage or other bills while you are unable to work due to a disability.

Both of these insurance riders are available as add-ons to your Mortgage Protection Insurance.

More than just paying for your mortgage

But Mortgage Protection Insurance can be also used for more than your home mortgage! It is not limited to just paying off your home loan. Your family can choose to spend the money any way they need to. If the money is needed for medical bills for example, they can choose to pay those with these funds.

And, as mentioned before, one of the most common reasons people file bankruptcy is due to medical bills, so being able to use your Mortgage Protection Insurance to may medical bills is a great benefit.

A legacy of bad credit

If you or your family is pushed into bankruptcy, it could take 7 years (or longer) after losing a home to foreclosure or through bankruptcy to be qualified to buy a home again.

Your family might not only lose their home if they are unable to pay the mortgage, but they could also be left with a 7-year legacy of bad credit. Piling misery on top of misery.

Bankruptcy can also impact future insurance purchases

An unknown fact:

Some insurance companies may not allow you to purchase Life Insurance or Mortgage Protection in the future if you have had a bankruptcy (depending on many factors)!

Don’t just become another bankruptcy statistic

When you buy Mortgage Protection Insurance you can breathe a sigh of relief – your mortgage will still be paid if you die. If your family is unable to pay the mortgage after you die, they will not lose their home, or risk having to file for bankruptcy. They will be protected.

Some Good News

Mortgage Protection Insurance is one of the easiest and most affordable policies you can buy and has very high rates of acceptance! When you buy Mortgage Protection Insurance you and your family can avoid becoming just another bankruptcy statistic.

Since Asurea has access to over 40 insurance companies, even if you are having trouble getting insured due to a bankruptcy, we will work hard to find you the right policy!

 

Related posts:

Are You Uninsurable?

Mortgage Protection Insurance Explained

 

Asurea Insurance Services is the nation’s premier Insurance Marketing Organization that finds the perfect policy for your needs and budget. Asurea offers Mortgage Protection, Medicare Supplements, Final Expense, Retirement Solutions and Permanent Life Insurance.

Lisa Thibodeau

Lisa Thibodeau

Marketing Content Writer at Asurea
Lisa is the Marketing Content Writer for Asurea. She is also the founder and publisher of Childhood Magazine and a freelance journalist. She holds a B.A. in English from CSU Sacramento. Write to her at lthibodeau@asurea.com.
Lisa Thibodeau

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