If you are considering mortgage life insurance it is important to first understand the difference between mortgage life and term life coverage. Both offer affordable coverage options with a few distinct differences.
Mortgage Life Insurance
A mortgage life insurance policy pays your remaining mortgage balance in the event that you pass away or become disabled. Your life insurance carrier pays your lender directly, freeing your spouse and/or dependants of the responsibility of your mortgage. This can leave a valuable asset to your loved ones that provides greater security. Since mortgage life insurance policies only cover your remaining mortgage balance, your death benefit decreases as your mortgage balance decreases over time.
Term Life Insurance
A term life insurance policy pays out money directly to your beneficiaries if you pass away and may give your family more flexibility. The money canbe used to pay a mortgage, settle debts, or make other long-term investments. An adequate term life insurance policy takes into account the income your family would need if you were unable to provide for them. This includes: daily living expenses, college tuition, loan payments and financial responsibilities. As you pay down your mortgage, your term life insurance coverage will remain consistent.
Mortgage life insurance and term life both offer great coverage options for those looking to invest in term coverage. Whether your family simply needs help covering the mortgage or the mortgage and a host of other expenses, there is no time like the present to start protecting your family with life insurance.
At Mortgage Insurance, we work to help you find a mortgage or term life insurance policy that meets your needs and fits your budget. Our licensed life insurance agents are here to answer your questions and to help you determine which mortgage or term life insurance policy is right for you.
Request a quote today and speak with our one of our helpful agents.