Mortgage Life Insurance
For most people, the monthly mortgage payment represents a significant portion of their monthly cash flow. What could be more traumatic than having to face losing one’s home in addition to losing a beloved family member? Without mortgage life insurance, that situation is all too common. Many individuals find themselves in the unfortunate situation of having to sell or facing foreclosure following the death of a family member. You can make sure that your family will never have to deal with this type of trauma simply by adding a mortgage life insurance policy to your portfolio of coverage.
Affordable Mortgage Life Insurance Options
There are several different ways to make sure that your family won’t have to struggle with making mortgage payments or face foreclosure in the event that something happens to you. There are several different types of life insurance that work well as mortgage life insurance policies. The best types of life insurance for this purpose are term life insurance and return of premium term life insurance policies.
Reducing Term Mortgage Insurance
At one time, this type of policy is what most people purchased to ensure their mortgages
would be paid in the event of death. You would insure the amount you owed on your mortgage and the death benefit would decrease annually, as your mortgage payments reduced the amount you owed on it.
With increased competition in the level term life insurance marketplace, prices of level term were reduced significantly, making it the most economical choice for mortgage protection.
Term Life Insurance Mortgage Protection
Most people now opt for traditional level term life insurance policies that coincide with their mortgage loan repayment schedule. With this type of policy, coverage remains in effect until the policy’s term is complete. At the end of the term, coverage simply expires.
Return of Premium Life Insurance Mortgage Protection
Many people choose return of premium life insurance rather than traditional term life insurance options when putting mortgage protection insurance in place. This type of insurance has higher premiums than term coverage, but offers a distinct advantage. With a return of premium policy, if the policy stays in force throughout the term, premiums you paid in are returned.
Paying off one’s mortgage in the event of death is usually the primary reason people purchase life insurance today. With lower term life premiums and the introduction of return of premium term life insurance, consumers now have several choices of mortgage protection.
Get the best rates on your insurance policy by using our instant, online life insurance quote tool.