If you own a home with a mortgage loan you may be wondering what is the best type of life insurance to protect my mortgage?
Actually, life insurance protects your family by providing the money needed to pay off the outstanding loan on your home, upon your death.
How Do You Choose the Best Mortgage Life Insurance Plan?
There are several key factors to consider when selecting a mortgage insurance policy.
How Much Insurance You Need to Buy
You’ll want to select an amount of life insurance equal to the amount of money owed on your outstanding home mortgage loan. That way, your beneficiary has enough money to pay off the mortgage should you pass away.
How Long You Need the Life Insurance to Last
You’ll want to select a term (duration) of life insurance that matches the length of time you will be paying on your mortgage loan, which is usually 15, 20 or 30 years.
How Much the Mortgage Life Insurance Will Cost
Term life insurance is the easiest and most affordable type of life insurance you can get to protect your home mortgage loan.
The cost of your mortgage term life insurance will depend on several factors, including:
In addition, your personal risk factors impacting your cost of insurance include tobacco use, lifestyle, occupation, hobbies, driving record, height-to-weight ratio, etc.
Here’s how you can request a free quote for mortgage term life insurance and compare the best prices from 40 of the leading life insurance companies.
The Financial Strength Rating of the Insurance Company
You’ll want to choose a life insurance company with a financial strength rating from A.M Best of at least "A" Excellent or better.
The financial rating is an indication of the insurer’s ability to meet their financial obligations and pay their claims based on an independent review and analysis of the insurer’s financial statements by an independent rating agency (A.M. Best).
How Long Your Premium is Guaranteed to Remain the Same
With level term life insurance, your premium is guaranteed to remain level (the same) each year for the entire duration (term) of your policy, which may be 10, 15, 20 or 30 years depending on the length of term you select.
The Beneficiary of Your Mortgage Life Insurance Policy
The beneficiary of a life insurance policy is the person(s) you choose to receive the proceeds (death benefit payout) from your insurance policy upon your death. The beneficiary may use the proceeds any way they choose including to pay off the mortgage on your home.
Mortgage Life Insurance Quotes
Top Pick – JRC Insurance Group
JRC Insurance Group helps you shop, compare and save on life insurance. Regardless of your age or health background, we'll shop our 40+ insurance companies and find you affordable life insurance you need to protect your family and fit your budget. Compare the best life insurance rates for savings up to 73%. Get Your FREE Quote.
Highly Recommended – Haven Life
Haven Life uses the information provided in your application to make an instant decision on your application. Healthy, qualified applicants (based on the information provided in your life insurance application) can be insured immediately with no medical exam while other applicants can receive immediate coverage pending a medical exam.