AFTER SPENDING MONTHS SEARCHING,
your family has found the perfect place to call home. You complete endless forms and documents
and are handed a payment booklet from your lender. Did you buy Mortgage Life Insurance
protection to protect this home for your family ifbyou are not around to make payments?
Since, Mortgage Life Insurance is generally not required by law; many homeowners initially
overlook this valuable coverage at the closing.
If you do buy mortgage insurance from your lender the policy benefits are typically paid to
the lender upon your death. Moreover, the death benefit is usually gradually reduced as
your loan balance is reduced.Many people do not realize that Mortgage Life is
simply a decreasing term life insurance policy.
Depending on your budget, and anticipated stay in your home, you can acquire an affordable life
policy from any independent agent. This policy can be adapted to meet your specific needs with
the death benefit going to your named beneficiary.The death benefit will always remain level
even as the loan balance is reduced and the premiums are often cheaper.
The three most popular policies used to cover a mortgage are:
Term Life
Term Life s a level death benefit with a guaranteed evel premium for ten, fifteen, twenty
years, or even thirty years. Benefits will be paid if you die within the years specified in your
policy. This coverage is very affordable and in many cases can be arranged to correspond with
the length of your mortgage.
Term with Premium Refund
ROP Term ls a leveldeath benefit with guaranteed level premium for either twenty or thirty years. At
the end of the term, all the premiums will be refunded to you.Although, this policy is a little more
expensive then traditional term insurance, it is becoming increasing popular for younger people.
Whole Life or Universal Life
Both give death protection and premiums which remain the same for as long as you live. These
premiums can be several times higher than you would pay for the same amount of term insurance.
