Is Mortgage Life Insurance For Me?
Buying a house is an incredible financial investment. Most consumers will need to go through a mortgage company in order to get the financing that is possible to buy a home. With a mortgage comes a lot of financial responsibility and required insurance investments from the state. However, one optional form of insurance may be a good investment.
Mortgage life insurance is a form of insurance that goes toward the mortgage if the home owner dies. Buying mortgage life insurance is optional and is usually given as a benefit from the mortgage company. However, mortgage life insurance is sold onto the open market by independent firms, often at more competitive prices.
This form of life insurance is a tough one to mull over. On the one hand, its another payment per month on top of the mortgage, the home insurance, and other payments the owner has in life. On the other hand, if the owner dies prematurely, the home’s mortgage needs to still be paid, and that can fall on other beneficiaries, like the owner’s family or children. These are serious variables to consider and are understandable to wrestle with.
One benefit to mortgage life insurance is that the more competitively priced life insurance policies will factor in the owner’s relative health into the rate. Like typical life insurance, the insurance provider will reduce the monthly rates for the insurance holder if they can document they live a healthy lifestyle (such as being a non-smoker). Unlike typical life insurance, the mortgage life insurance is only toward the home, not the person. But, that can be a good thing; no one wants to leave their family with a typical life insurance policy that ends up being completely used on the mortgage payments. If the person has a mortgage life insurance policy, their mortgage life insurance will pay for the home while their typical life insurance policy can go to the beneficiaries.
Signing up for mortgage life insurance is certainly a big financial decision to make. However, if the person is buying a home, considering mortgage life insurance is another crucial choice to make for the financial future of the owner, the home, and the owner’s beneficiaries.
Category: Housing, Life Insurance
