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PTP Insurance
Agents of Naperville, IL, an independent insurance agency
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Mortgage
Protection Insurance
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What is Mortgage Protection
Insurance?
 The
term mortgage protection insurance can be somewhat confusing
depending on what it is one wants to protect. Some variations
of mortgage protection insurance include:
- Protect one's ability to make
the monthly payment in the event of illness. This interpretation
implies an interest in disability insurance, short term and/or
long term.
- Protect the mortgagee (lender,
bank, etc.) in the event the mortgager (home owner) defaults
on the loan. Here, we are talking about private mortgage insurance,
aka PMI insurance.
- A type of life insurance
that pays off one's home loan(s) in the event of one's death.
If so, then the mortgage protection insurance being discussed
is a type of term life insurance.
People To People Insurance Services
offers the third type of mortgage protection insurance, a type
of term life insurance. We do not offer either disability
insurance or PMI insurance.
Mortgage Life Insurance, aka
Mortgage Protection Insurance, is a term life insurance policy
that provides a death benefit for the purpose of paying off a
mortgage loan in the event of the death of the insured. Such
a policy is typically structured in one of two ways;
- level premium, with a declining
face value. The face value (death benefit) is intended to equal
the amount of the mortgage on the policy owner’s home so
there will be sufficient funds to pay off the mortgage loan if
the insured dies.
- Guaranteed
level premium term.
Both the premium and death benefit are set at a fixed amount,
and the term is a set period of time (usually set to expire around
the time the mortgage loan would be paid off). The only difference
between this and the first alternative is the death benefit value.
If one is willing to pay a slightly higher premium for a non-declining
death benefit, then a guaranteed level premium term life insurance
policy would be the product of choice.
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People
to People Insurance Services Inc. - 1240 Iroquois, Naperville, IL, DuPage County - Serving Chicagoland (630) 355-2355 |
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Naperville Illinois personal and commercial independent insurance agents, PTP Insurance Agency, serves clients throughout
the metropolitan Chicagoland area which includes Cook County, DuPage County, Kane County, Kendall County and Will County;
including, but not limited to, Naperville, Bolingbrook, Plainfield, Aurora, Batavia, Barrington, Berwyn,
Bedford Park, Bloomingdale, Brookfield, Burbank, Burr Ridge, Carol Stream, Chicago, Clarendon Hills, Countryside,
Darien, Downers Grove, Elgin, Elmhurst Glen Ellyn, Glendale Heights, Hickory Hills, Hoffman Estates, LaGrange,
LaGrange Park, Lemont, Lisle, Lockport, Lombard, Lyons, Mokena, Montgomery, Oak Brook, Oswego, Romeoville,
St Charles, Schaumburg, Shorewood, Sycamore, Warrenville,West Chicago, Westmont, Woodridge and Yorkville.
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