Mortgage Life Insurance
Are you a homeowner with an outstanding mortgage?
How would the mortgage be paid if a medical emergency or death was to occur to the person who is responsible for paying the bills or caring for children?
Do you currently have a life insurance policy to cover the mortgage expense in a medical emergency?
This article will explain what mortgage life insurance is and how it can be used to help families.
What is Mortgage term life insurance?
Mortgage life insurance is purchased to pay an outstanding mortgage in the event of death or serious
medical illness of the primary breadwinner or child caregiver.
Mortgage life insurance is a term life insurance policy. The length of the policy is normally the same length as the mortgage, 15 or 30 years, and the face amount of the policy is usually equal to the mortgage amount.
As the mortgage amount is decreasing over the years, the term policy face amount remains the same. If the life insurance policy must be used for any reason before maturity, the insured or beneficiary can pay the outstanding balance of the mortgage, and the funds leftover can be used for anything they wish.
Who should have a mortgage term life insurance policy?
The adults in the home whose income is needed to pay the bills. If a person is unable to work due to a severe illness or death, their missing income will have a financial impact on the household. Having a mortgage term life insurance policy can help eliminate financial stress.
The person who is responsible for caring for the children in the home. If a person is unable to care for the children due to a severe illness or death, this becomes a financial burden on the other adults responsible for the children. A mortgage term life insurance can be used to pay for an external childcare provider helping to eliminate financial stress.
Why purchase mortgage term life insurance?
Because your home is most likely your largest asset and largest financial responsibility, it should have insurance to help the family in case of an unexpected medical emergency.
