Mortgage Payment Protection Insurance is a mortgage protection tool that homeowners can purchase to protect themselves in the event of losing your job, or becoming disabled.  If this were to happen, the homeowner’s monthly principal and interest payment during the disability, or loss of job, is waived for a specified number of months, or even years.  People that need this type of protection are homeowners that may not qualify for certain types of disability or life insurance due to the nature of their occupation or, the state of their health.

The positives are, if you are at a high risk of losing your job, you should consider this type of coverage.  This type of protection may be beneficial for a homeowner who does not have the adequate savings or reserves in the bank if there was an accident or emergency.  There are other benefits of having this type of coverage.  For instance, you do not need to have a physical examination by a physician if you have health problems, or a health risk, this program may be a solution.  This type of insurance is easy to buy.  You can select a provider either during, or after the mortgage loan closes.  There are many companies that offer this type of protection when you close on your home.  You will get stacks of mail wanting you to sign up for this program.  Be careful though, every company that offers Mortgage Payment Protection has something different to offer.

There are negatives in Mortgage Payment Protection Insurance.  The payment only goes toward principal and interest, and not the property taxes or insurance.  The premiums can be expensive when compared to term life insurance premiums, which generally provide better value on the dollar, and especially if you are in good health.  Also, each company that offers this type of protection has something different to offer the homeowner.  Focus on reading the specific policy from every company you select because every policy is different and not the brochure.
Here’s a good example, most homeowners don’t realize what would happen to them, or their family if they were in a car accident.  Let’s say, your driving to work, and a car collides with your car at 50m.p.h causing major injuries to you, and your car.  Car insurance pays for your medical bills and your car, but what happens when you are in a serious car accident and you were admitted to the hospital for let’s say two weeks?  Let’s suppose that after being in the hospital for those two weeks, the physician says that you cannot go back to work for a month.  Maybe, even two months!  If you hire an accident attorney, it takes time to file a claim and to collect on the damages from the accident.  So, in the meantime, how are you going to pay the mortgage?  This is where Mortgage Payment Protection Insurance is a key element in providing you the safety and security for you and your family in the event of a serious injury, disability, or major health problem so they can focus on you and not worry about the mortgage payment.