Real estate is an amazing vehicle for wealth enhancement. Mr. Donald Trump became wealthy through real estate, as many others have also. One way to protect your investment is to consider a Mortgage Protection policy. A mortgage protection policy is a decreasing term life insurance policy that is designed to cover your mortgage in the event of a job loss [or worse]. Ok, let's break this thing down:
Term Life Insurance: a life insurance policy designed to protect one's life for a specified period of time. The period of time can be 1 year, 5 years, 10 years, 15 years, 20 years or 30 years.
Decreasing Term Life Insurance: a life insurance policy that has a benefit that decreases along with whatever is being protected. (Example: a 30 year mortgage in the amount of $100,000 could use a decreasing term life policy in the same amount. As the mortgage principle amount decreases, so shall the insurance policy's face amount. When the mortgage is paid off, the face value [ideally] would be zero and the policy could possibly be converted to whole life insurance)
Mortgage Protection: a life insurance policy protecting your mortgage. Some policies provide temporary income in the event of job loss. But in the case of the inevitable, the mortgage would be paid off with the proceeds of the insurance policy. Thus leaving your loved ones with more security. They won't have the added responsibility of scrambling to pay off your home.
Note...mortgage protection insurance is NOT the same as home owner's insurance [which protects the structure of your home against damage], nor is it the same as private mortgage insurance [which protects the lender against the home owner's default]
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