|
Mortgage Protection Term Life Insurance
What is Mortgage Protection Term Life Insurance?
Mortgage Protection Term Life Insurance is a product that is specifically designed to pay off your mortgage in the case of your untimely death.
Request a free term life insurance quote >>
How does Mortgage Protection Term Life Insurance Work?
The following are a few characteristics that distinguish the mortgage protection term life product from other term life products.
- The death benefit is the outstanding balance on your mortgage. In other words, when you purchase your mortgage protection term life product, the price will be equivalent to the amount you owe on your mortgage.
- Premium payments usually remain level through out the life of your policy. Even though the price of your policy was initially determined based on the remaining balance on your mortgage and that balance decreases over the years the premium remains level because the policy holder's death risk increases as he/she ages.
Mortgage Protection Term Life Insurance versus Traditional Term Life Insurance?
Term life with mortgage protection and traditional term life insurances are very similar. The main difference between the two types of policies lies in how the policy is paid out, should the policy holder pass on while the policy is in effect. With a traditional term life product, the benefit is paid to the beneficiary, and the beneficiary usually has a great deal of flexibility in deciding what to do with the funds. However, with a mortgage protection product, the benefit is used to make the remaining payments on your mortgage.
The Ideal Mortgage Protection Term Life Insurance Customer
The ideal customer for a mortgage protection life insurance product is a homeowner and the bread winner in the family. If the policy holder passes on while he/she has a mortgage protection policy in effect, the remaining family will not have to worry about their ability to pay off the mortgage.
Request a free term life insurance quote >>
Term Life Insure provides information at no cost concerning insurance products and services but is not an insurer or an agency. Please speak to your insurance agent for more information. Not all products are available in all states.
