Do You Need Life Insurance to Protect the Loan on Your Home?
If you own a home and have a mortgage loan you may be in need of term insurance protection.
With term life insurance, you can guarantee your family can remain in the home they shared with you, in case you pass away, by providing your loved ones with the funds needed to pay off the remaining balance owed on your home loan.
Benefits of Term Insurance for Home Mortgages
How Does Term Insurance for Work to Protect Your Mortgage Loan?
Mortgage term life insurance is very straightforward:
You select the amount of coverage you need and the duration of your policy – how long your mortgage is in place – usually 15, 20 or 30 years.
If you pass away before your term life policy expires, the death benefit is paid to your beneficiary (which you select).
If you outlive the duration of your term insurance policy, you would have paid off your mortgage by then, and there is no death benefit paid from your life insurance policy since the protection has ended.
How Much Term Mortgage Life Insurance Do I Need?
The amount of term insurance coverage you need to protect your home mortgage loan is the amount you still owe on your mortgage. So, if you owe $300,000 on your home mortgage, you’ll want a $300,000 term life insurance policy to protect your mortgage.
How Long Do I Need Mortgage Term Insurance Protection to Last?
The duration of your mortgage life insurance plan should be the same length of time left on your home mortgage loan. So, if you have a new 30-year mortgage, you’ll want a 30-year term policy to provide protection throughout the entire life of your loan.
How Much Life Insurance Can I Buy to Protect My Home Mortgage Loan?
It depends on how much life insurance you already own. However, most life insurers may allow you to have up to 20 times your annual income in life insurance. So, if you make $75,000 per year, you may own up to $1,500,000 or more of life insurance.
Is a Medical Examination Required?
That depends on the type of life insurance you buy. Term life insurance policies that requires a medical exam may offer more affordable pricing. However, no health exam term insurance plans offer competitive rates for healthy individuals.
How Long Does It Take to Start My Life Insurance Policy?
That depends on the type of term policy you purchase. If you choose a fully underwritten term life policy that requires a physical exam, it may take up to 6-8 weeks for your policy to be underwritten, approved and delivered to you.
There are instant issue term policies that offer coverage the same day you apply for your insurance.
Term 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.
Mortgage Term Life Insurance in Case of Death
Disclosure: Compensated Affiliate