How to Get Life Insurance Mortgage Quotes
If you own a home or you’re currently in the process of buying a new home you may be considering the purchase of a life insurance plan to protect your home mortgage loan.
The benefit is that your loved ones can remain in your home by using the proceeds you’re your mortgage life insurance policy to pay off the outstanding loan on your mortgage should you pass away.
It gives you peace of mind knowing your family will be safe and secure being able to remain in your home.
How Life Insurance Protects Your Home Mortgage
Mortgage Life Insurance: Leave Money to Pay off a Mortgage Loan
Your home may be your family’s largest asset. And their largest financial responsibility each month. An affordable term life insurance plan can help them remain in your home after you’re gone.
Perhaps the simplest of all life insurance types, term insurance is designed for:
Mortgage Protection Life Insurance
Purchase a term life insurance policy for at least the amount of your outstanding home mortgage loan.
Then, if you pass away during the "Term" of your policy, while the policy is "In Force", your loved ones receive the face value (death benefit) of your insurance policy. They can use the proceeds from your insurance to pay off the mortgage loan.
Proceeds from life insurance are often tax free.
Actually, the proceeds from your life insurance policy can be used for any purpose your beneficiaries choose. If your mortgage has a low interest rate, they may want to pay off high-interest credit card debt and keep paying monthly on the low-interest mortgage.
Or, your beneficiaries may want to pay for home maintenance costs and upkeep. Whatever they decide to do with the proceeds from your policy, the money will come in handy.
When selecting the "term" of your policy, may sure it matches the duration of your mortgage loan – 10, 15, 20 or 30 years so you are covered throughout the life of your home loan.
Term Life Insurance vs. Mortgage Life Insurance
Both term insurance and mortgage life insurance provide a means of paying off the loan on your mortgage. With either type of insurance, you pay regular premiums to keep the coverage "In Force".
But with mortgage life insurance, your mortgage lender is the beneficiary of the policy rather than beneficiaries you designate.
If you pass away, your lender is paid the balance of your mortgage owed. Your mortgage will go away, but your survivors or loved ones won’t see any of the proceeds from the insurance.
In addition, standard term life insurance policies offer a level death benefit and level premiums for the term (duration) of the policy.
Whereas, with mortgage life insurance, the premiums may remain the same each year, but the value of the policy death benefit decreases over time as the balance of your mortgage declines.
Life Insurance Mortgage Quotes
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