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Mortgage Life Insurance

Mortgage Life Insurance


Mortgage Life Insurance - Insurance is not a popular topic of conversation, and life insurance is even less so! Regardless of its negative connotation, life insurance is an important aspect of your family's financial security. Of all the types of insurance out there, have you considered the purchase of mortgage life insurance?

Mortgage Life Insurance Quotes & Related Terms:-

Mortgage Life Insurance
Mortgage Life Insurance

Mortgage life insurance is exactly what it sounds like - your mortgage is essentially paid off in the event of your death or disabled in such a way that you cannot make your payments. Many mortgage companies offer mortgage life insurance at the time of purchasing your house. Although this is a convenient option, you can always turn it down and look into buying separately. Be warned that if you do turn it down, the mortgage company will ask you to sign several more papers to show that you were offered mortgage insurance and that it was explained to you and that you understand the risks. Basically, the only ramification of not carrying mortgage life insurance is that you are liable for the entire amount of the mortgage regardless of your ability to pay. If you do choose to waive mortgage life insurance, it is a good idea to make sure your basic life insurance coverage will be enough to pay off the mortgage.

There is argument as to the benefit of mortgage life insurance. One side of the discussion is that it mostly benefits the mortgage company. From this side, if you consider that your fixed rate is technically a decreasing value, which makes sense that the buyer is not benefiting from mortgage life insurance. For example, if you are paying a fixed premium every month towards the insurance and it only pays off if and when you die; you are beginning your payment of premiums on the full amount of the loan. After a year or so of mortgage payments, the amount you owe to your mortgage is less even though you are continually paying the same premium. So hypothetically, you are paying fixed rate premiums on a never ending lower payout. This argument states that you are better off with traditional life insurance as the fixed premium is on a forever stable fixed payout.

Conversely, the other side of the discussion says that every home buyer benefits from mortgage life insurance because it gives your family security from financial worry in the event of your death. The family home will be completely paid for and your loved ones won't have to struggle to pay off the mortgage. Another benefit is that mortgage life insurance is very easy to get. In the event you have a pre-existing illness that makes it difficult to qualify for traditional life insurance, mortgage life insurance could be just the ticket!

As with any insurance purchase, do your research before purchasing. The most important aspect of purchasing any type of insurance is to know that the company will be around when you need them. A.M. Best Company is a leading insurance analyst. Find out how they rated the company you are considering before purchasing a policy. Remember there are many companies that offer quick online quotes. Check out Cheaper Life Insurance Quotes to find the best prices. Nothing compares to the peace of mind that comes from knowing your family's future is prepared for.

Related Searches For Life Insurance:- Types Of Life Insurance

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