Mortgage Protection Insurance
Mortgage Protection Insurance
Purchasing a home is typically the biggest purchase of your lifetime, and the mortgage is the single largest debt we’ll ever owe. Protecting that investment with life insurance for homeowners is smart move. Think about what could happen if you or your spouse dies with no life insurance coverage. How would those mortgage payments get made? What would happen to your family home?
Buying a house is a big step in many people’s lives – whether you are a first time home buyer or have some experience in real estate. Most people take out a mortgage in order to accomplish this piece of the dream. With the average length of a mortgage 30 years, it is important to provide long-term protection for your family with a term life insurance plan for homeowners.
Mortgage Protection Insurance
A Life Insurance policy can help relieve that stress and worry for homeowners. The duration of the term life policy can be matched to the mortgage length, from as low as 10 years up to 35 years. You may also want to purchase a coverage amount of your policy equivalent to your home value. Monthly premiums on a term life policy can be reasonable for the amount of protection you can get, especially if you’re young and lead a healthy lifestyle.
If you’re paying a mortgage, maybe you’ve thought about an insurance product called mortgage life insurance. With a mortgage life insurance policy, when you die, the policy is there to make sure the institution that lent you the money for your mortgage will get paid. That can be a big help to your spouse and family, but you might help them more with a term life insurance policy instead. It’s important to get lots of information about mortgage life insurance before you buy to help protect your family’s financial future. Additionally, a good term life insurance policy will take into account all the money that your family will need – including money to cover the mortgage payments. But there’s more.
Most mortgage life insurance plans only cover the amount that’s owed to the mortgage lender. During your life, as you pay down your mortgage, your term life insurance policy coverage does not change along with your mortgage balance, effectively giving you better value from your monthly premiums. Term life insurance plans pay out money to your beneficiaries, not the mortgage-lending institution. This feature gives your family more flexibility to manage without you. They can use the money to pay the mortgage, or they can use it to pay off debts, or make other investments to secure their financial future.