Why is Mortgage Protection so important?

You see a report on the evening news about a fatal car accident or a weather-related disaster. You hear about a friend or neighbor who unexpectedly lost a loved one. What if something like that happened to you? Would your family be prepared?

A time of mourning is no time to make major financial decisions or face the impending crisis of foreclosure. But, all too often, families are forced to put their home up for sale or risk losing it to the bank when the unexpected happens. Mortgage protection insurance can ease the financial burden on your family and ensure that they can make the next house payment, even in dire circumstances. If you are injured or stricken with a life-threatening illness, or if you die, you can leave behind a blessing to those you hold closest to your heart with a custom mortgage protection insurance plan.

What is Mortgage Protection?

Mortgage insurance is protection to ensure that your family will never lose their home, even in the event of a tragedy. If you die, the insurance will pay off your mortgage. And, if you are hospitalized because of an illness or disability, mortgage insurance can make your monthly house payment for up to two years. Even if you refinance, your coverage stays in place. With a mortgage protection plan, your family's future is secure.

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What are Equity Index Annuities?

This annuity is not a security, as you might suspect, but it is classified as a single-premium traditional annuity. It is an annuity because it meets the strict insurance department requirements for interest guarantees and guarantees against loss of principal, and it provides traditional annuity benefits.

No-Loss Provision
The first and possibly most-attractive provision of equity index annuities is the no-loss provision. This means that once a premium payment has been made or interest has been credited to the account, the account value will never decrease below that amount. This provides safety against the volatility of the S&P 500.

Interest Guarantees
The next benefit that appeals to many people is interest guarantees. Most policies have a cap (the maximum interest rate that can be credited to a policy in a policy year) and a floor (the minimum interest rate that can be credited in a policy year). The cap rate can vary from no cap to a fixed percentage, but the floor is generally zero. This allows the policyholder to benefit from potentially high returns and be guaranteed at the same time that no money will be lost.

Competitive Rates of Return
With concerns over inflation and making sure that investments will meet our future needs, many people have turned to the equity market for higher returns. It makes sense when you consider how well the S&P 500 index has performed historically.

Traditional Annuity Benefits
Equity index annuities offer the same benefits as traditional annuities. Notable among these are tax-deferred growth and early withdrawal of funds without penalty. This early withdrawal is usually conditioned upon the annuitant’s death or admittance to a nursing home.

Note that most annuities have surrender charges which are assessed in the early years of the contract if the owner surrenders it before the company has had the opportunity to recover its costs. The earnings portion of withdrawals are taxable as ordinary income and, if made prior to age 59 ½ are subject to a 10 percent penalty.

Equity index annuities typically offer other benefits that are not generally included in traditional policies: a 100 percent money-back guarantee, no front-end sales charges, and no annual management fees or administrative fees. However, equity index annuities can contain mortality and expense charges, cost-of-insurance charges, and administrative fees. Equity index annuity values fluctuate with changes in market conditions.

Overall, equity index annuities are single-premium annuities that are performance-linked to the S&P 500 stock index. They guarantee security of principal and credited interest, and many don’t have a cap on earnings. When you consider the performance of the S&P 500, these annuities look even better.

Guarantees are provided by the issuing insurance company. The Standard & Poor’s Composite Index of 500 stocks is generally considered representative of the U.S. stock market. The performance of any index is not indicative of the performance of any particular investment. Individuals cannot invest directly in any index. Past performance is no guarantee of future results.

Why is Mortgage Protection Insurance so Important?

Imagine the worst case scenario. A fatal accident today would force your loved ones to immediately experience financial hardship. On top of your final expenses, the mortgage is due, but your family has no way to pay it without your income. They haven't even had enough time to grieve and now they have to deal with the impending tragedy of foreclosure.
Like most life insurance, mortgage protection insurance eases the financial burden of your loved ones. It is an affordable way of ensuring that your home is paid for no matter the circumstances. Cancer, stroke, heart attack, injury, death… your family will never be in jeopardy of losing its home as long as you put a custom mortgage protection insurance plan in place.
If you’re a homeowner, you can obtain a free mortgage protection insurance quote by filling out the form to your right. Our team of highly skilled mortgage protection specialists will work with you to develop a plan that fits your budget and coverage needs. Click here for a quote