is mortgage insurance a scam

Do you think this is a bright idea or an omen?

Most mortgage life insurance policies offer riders that include disability insurance and Return of Premium. The disability insurance rider is designed to pay the mortgage payment if you become disabled due to injury or illness. The disability riders on these plans are usually not very strong. In other words, the definition of disability is that you must be catastrophically disabled to qualify for benefits.

It might be shocking, but finding out who's recently purchased home is public information. Information on who bought or refinanced a home loan, the lender, the loan amount, and the address the loan is associated with is readily available at the courthouse. Companies will reach out to new homeowners at this time with offers like mortgage protection and life insurance.

Mortgage Protection Life Insurance (PLI) is a legal type of insurance that will assist your family members in staying at home if you suddenly die. Your family's funds could use to help pay your mortgage. However, scammers may use this concern to extort your money or even more.

Mortgage Life Insurance is just a cleverly packaged way to offer life insurance. Some would say it is a gimmicky approach, and in many cases, they are right. However, as stated earlier, many agents use this marketing strategy to target new homeowners. They recognize the potential need for additional life insurance protection.