Mortgage Protection When Ill

When you buy a home it can be one of the biggest achievements and investments of your life. And you want to make sure that you protect that investment. 

Sometimes the uncertainty of life can cause undesirable outcomes that jeopardize your quality of life. That is why mortgage protection insurance is so important. 

A question on many homeowners’ minds is: Is mortgage protection when ill available? Often followed by how does it work? Knowing exactly how to maneuver and what decisions to make during the time of your illness can be difficult. 

This article’s purpose is to help you learn how you can get help now. And understand how mortgage protection insurance (MPI) can help you save your home if you are faced with a life-threatening illness. 

What is mortgage protection insurance?

When you first buy your home, you are solicited heavily. Local businesses, internet providers, and home improvement stores just to name a few. Another type of solicitation comes from insurance companies. 

Mortgage protection insurance is often included in the mail you receive. This insurance protects you ‘the homeowner’ from foreclosure and pays off your mortgage in the event of you enduring a health issue, become disabled, or worse, pass away. 

MPI can be that peace of mind and certainty you need, when it seems like everything else around you is less concrete.  Many policies function as a type of disability or life insurance policy. Offering payments based on specific criteria being met. 


Mortgage protection when your ill goes a bit deeper than this. Let’s look at what a policy covers so you have clear expectations about this type of insurance.  

How does mortgage protection insurance work?

MPI companies work differently it’s important that when doing your research you learn exactly what is covered, and what isn’t. With that being said let’s discuss some common services. 

The cost of the monthly premium you pay can vary depending on the amount of your loan, your age, and your health. Some companies don’t do health screenings, but many do if you are applying for MPI. 

Some policies will cover the mortgage in the event of a disability, the premium will vary based on your occupation. Your medical bills can also be paid through your policy. This is something you need to clarify when going over the policy. 

If you die and still have an outstanding balance on your mortgage the insurer will pay the remaining balance of your mortgage directly to the lender. This abstracts any confusion or complexities from family members that may be involved. They also can rest assured no more mortgage payments are required. 

Death benefit

This is another name for how your plan can cover an untimely death. When an insurance plan pays only in the case of premature death, the policy can be much lower in premiums. When selecting a plan of this nature there are a few important things to consider. 

  1. Make sure you select a plan that protects your mortgage no matter how death occurs. This means accidental death or natural. Many insurers only cover accidental. 
  2. Accelerated Death Benefit – A lump sum that is paid if a doctor diagnoses you with a critical illness giving you only a certain amount of time to live. 

Healthcare terms to consider

When you are purchasing you plan there are a few things you also want to pay attention too.

  1. Get a fixed guaranteed rate for your plan – This means that no matter what happens to your health after you plan starts your costs never change.
  2. Get a convertible plan – This simply means that you can move from a term policy, which is for a set amount of years, into full whole life or universal policy that will cover you to the age of 100 years old. This also should be accompanied by a guarantee that you will not need a new exam to prove good health)

Critical illness rider

This addition to your mortgage insurance policy is an extra add on. It comes with an additional cost but well worth it. Here’s why. In our society, people are beating the critical illness, living longer and becoming examples of hope. Technology is increasing the longevity of life and also how well we all deal with these devastating diseases. 

The only problem is, the time it takes to recover is often not accompanied by a supplemental income, which over time can put a financial strain on your family. What the Critical illness rider does is pay a benefit amount to the policyholder when the critical illness has been diagnosed. 

Depending on the plan, and company this will not decrease your death benefit of the base policy. That is why it’s called a rider and it’s in addition too. 

It’s important for you to know that you have a Critical illness rider, and not just a plan that covers Critical illness only, and your death benefit no longer stands after payout. When dealing with insurance you want to be clear on everything. Home Loan Protector is very good at providing that clarity and making sure you MPI is exactly what you want. 

Every mortgage insurance company is different and has guidelines on what they consider a critical illness. Some examples can be – blindness, cardiac arrest, coma, kidney failure, respiratory failure, and traumatic brain injury. 

Prepare for Mortgage Protection When Ill

Although mortgage protection when ill is the last thing anyone wants to think about it’s something that needs to be addressed. 

When you are a homeowner and the provider taking care of your family; making sure there are no surprises that will cause them anxiety in your unexpected sickness or premature death, is a responsibility that comes with homeownership. 

There is a lot of information provided in this article so let’s recap:

You have learned what mortgage insurance is, and some of the main reasons why it’s important to consider using it, you learned what it does, and how it can help pay your mortgage if you become critically ill, or suffer an untimely death.  

You also are now aware of critical illness riders, that you can add to your MPI policy in addition to a death benefit. 

If you have questions about mortgage protection insurance pick up the phone and call Home Loan Protector at 877-568-8219. They cover an extensive range of illnesses, have a first-class reputation in the market place and they understand how frustrating it can be to find the right policy for your needs and they specialize in getting it right. Discover how they can help you be better protected.