Your home is one of the largest financial investments you and your family will likely make. For the majority of home-buyers, the mortgage will last for many, many years, often decades. For anyone who is the primary person responsible for paying the mortgage, what is going to happen in the event you pass away before the mortgage is paid off? Who will then become responsible for it? The act of paying the mortgage off could become a burden to your family. Can a Life Insurance Policy cover these expenses?
Should Your Life Insurance Policy Cover Your Mortgage
Possibly you have heard about mortgage life insurance along with term life insurance. What makes these two kinds of insurance different, and which is the preferable one to invest in? While both types of insurance require a monthly payment, they are quite different in how your beneficiaries will receive any money that the policy offers.
Mortgage life insurance only pays off the mortgage of the house, and your beneficiaries will get no other money from that policy. Often, the premiums can be high on a mortgage life insurance policy. Sometimes people select to choose a mortgage life insurance policy as opposed to a term life insurance one if they are in poor health and can’t otherwise get approved.
However, here’s why many experts recommend getting term life insurance rather than mortgage life insurance: Generally, based on your age and the condition on your health, the premiums are lower with term life insurance. In cases where you pass away before the mortgage is paid off, your beneficiaries will receive the money, and they can do what they want with it. Hopefully, your policy will provide enough money to pay off the mortgage and have additional money left over to help them cover other expenses.
Make an educated decision when purchasing life insurance. Look for an agent who can sign you up for the best plan for you and your family.
Have a questions or concern? Nick, Cindy & Nicholas Davis with RE/MAX Premier Group are here to assist you with all your Real Estate Needs. We are always available at 813-300-7116 to answer your questions or you can simply click here and we will be in touch with you shortly.
Need to get started with your mortgage process? You can contact Kyle Edwards with Iberia Bank at 813-495-5131, or simply click here to start your online application.
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