Life Insurance - Is It Good For Mortgage Protection?
Everyone has to have their life insurance but people hardly do anything about it and they don’t
realize that they will someday need pretty badly. This is especially important if you are the main
source of income in your family so that you’ll be able to sustain your family when your time
comes. Paying for the bill is no easy task, what more if you die. Your spouse will have a difficult
time supporting the family and to make things more difficult, you have to worry about your
mortgage’s protection as well.
As soon as you have purchased your house, expect to receive tons of marketing pieces through
your mail, telling you to get a life insurance mortgage protection for you and your family. The
truth about this is that this is actually just a twist about insurances. Mortgage life coverage is
something to assure that your mortgage gets paid off once you die, leaving your family worrying
less about losing a home.
If you are wondering about decreasing life term insurance, well it is suitable for people who are
still repaying their mortgage or the kind of mortgage where the remaining balance decreases
over time. Insurance coverage’s will always be in line with the outstanding balance in your
mortgage. This policy is best if you want to protect your family along with your mortgage. And as
soon as you pay of your mortgage, your policy gets cancelled and you would not receive any
Holding on to a decreasing life term insurance actually has a downside. Its purpose may be to
pay off your loan but this life insurance policy’s beneficiary is actually your mortgage lender,
which means that no one in your family will have a say when it comes to how much money is
being spent especially that it doesn’t go through them. Paying down the house may be very
important but that’s not the only thing you have to pay for. That is why a lot of people look for
other insurance plans that have more flexible terms.
Level term life insurance offers the option of buying a policy from an insurance company that will
match or even exceed the amount of the buyer’s mortgage. There will be fixed payments for
your beneficiaries who will get the money discreetly in case of death and this includes the
payment for your mortgage. This has two benefits, first, the coverage amount won’t be reduced
as time passes by and your beneficiaries will be able to use the money any time they wish.
While the thought of protecting your mortgage is important, it is best to take in consideration
your family’s disposition as well. A broader and more flexible life insurance may be best for your
loved ones and may even give you a better peace of mind. Don’t forget to talk to your financial
adviser about your situation to help you out.
Have a look at your credit scores before you buy vehicle as it plays a major role in determining
you auto loan interest rate. Keep a track of your credit score and maintain them healthy.