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Do I already have mortgage protection on my loan?
Most of the time, what you have is PMI (private mortgage insurance) already added in when you take out your loan. Homeowners are required to have this insurance if the balance of their loan is more than 80% of the original property value.
However, this mortgage insurance does not protect you at all, but only protects your lender if you quit making your mortgage payments. Many homeowners believe they have protection because of this insurance and leave themselves open to tragic circumstances should something happen to their family or loved ones.
Why should I get mortgage protection insurance instead of using the life insurance I already have?
Life insurance is meant to provide for living expenses for a long period of time should a provider pass away. Without mortgage protection insurance, you would have to pay off your biggest debt using a large sum of your life insurance, drastically reducing the amount for your future living expenses.
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