Mortgage Life Insurance
Insuring Your Life's Biggest Investment
If you're like most people, your home is the largest investment you'll ever make. And if other people depend on this investment (like your family) then Mortgage Life Insurance could be a perfect safety net for their security. Mortgage life insurance is a term policy (it doesn't build cash value) designed to cover your mortgage in the event of your untimely death.
Your mortgage isn't only your largest investment, it's also the longest financial commitment most people will ever make. A lot can happen during the life of a loan. Health conditions, financial situation, and the value of your home will all change by the time a mortgage loan is fulfilled. A mortgage life insurance policy is long term protection, the kind a family needs.
Different Kinds of Mortgage Life Insurance
There are several ways to open a mortgage life insurance policy. Sometimes, banks and real estate companies will sell a mortgage life insurance plan. The security it provides is beneficial to them, so they often offer it as an extra when you close your loan. In most cases, your benefits decrease as the principal decreases, you're only covered for what you owe on the mortgage. Yet the premiums stay the same throughout the life of the policy.
You can also open a mortgage life insurance policy directly with an insurance company. Working with an insurance company, in most cases, offers more advantages than the policies sold by banks and real estate companies. One benefit, is that the benefit amount often stays the same instead of decreasing (depending on the policy).
Other Differences in Mortgage Life Insurance Policies through Insurance Companies
Beneficiary In most cases, you have the option to choose your beneficiary. Mortgage life insurance from other sources almost always name the mortgage owner as the beneficiary. Also, the beneficiary can choose how to use the money.
Conversion Options Companies can usually offer mortgage life insurance policies with a pre-defined option to change coverage and payment in the future, one without regard to age and health conditions.
Guaranteed Premiums Sometimes, a mortgage life insurance policy doesn't guarantee the premiums. Using an insurance company gives you more options to set a defined premium or a variable one.
Freedom of Lenders Since other options make your lender the beneficiary of your mortgage life insurance policy, you loose the policy if you decide to refinance with a new lender. This can be a problem if your health conditions have changed since your policy started, obtaining a new policy might be impossible. But many insurance companies offer you the option of keeping your policy even if you switch lenders.
Mortgage life insurance is the right move for most because it offers a discounted rate for a term life policy. It's secure for you and secure for your family. Among the millions of home owners in America, few can guarantee their stability for the next thirty years. Mortgage life insurance changes that, so anyone can feel secure that their families won't lose their home when the worst happens.
Talk to your Insurance Agent to ensure Mortgage Life Insurance is right for you!