The cost of an average home is almost $250,000. With 10% down that's $1,134 a month mortgage payment. In many families, there is one spouse or partner who pays or both work to pay the monthly mortgage. If you are the primary income provider and die, will your family be able to keep their home and all it’s happy memories? Most homeowners are aware that if you pay only 10% down, your lender will require you to pay for private mortgage insurance (PMI). This insurance covers the lender, not you. The lender gets the principle, but your family must continue to pay the mortgage, or lose the house. This is why mortgage life insurance is so vital to maintaining some sense of security for your family.
What Is Mortgage Life Insurance
Mortgage life insurance, which is also known as mortgage protection insurance is a life insurance policy that upon your death pays off the outstanding mortgage on your home. A type of term life insurance, the policy will last as long as you owe money on your home. Upon your death, the payout will go to the mortgage lender and not your family, so you know their home is secure. There are many advantages to purchasing a mortgage life insurance. Terms and conditions do vary for mortgage life insurance from company to company. Most cases, if or when you die, the lender would receive the payout, and the death benefit will be the balance of your mortgage. With every monthly payment, your outstanding mortgage balance goes down and the death benefit amount on the mortgage life insurance policy also goes down.
The Advantages Of Having Mortgage Life Insurance
If you are a homeowner and have a mortgage payment, you can buy a mortgage life insurance policy. It is convenient and an excellent supplemental coverage along with your regular life insurance. Best of all No medical examination is required like other policies. With a mortgage life insurance, your life insurance payout can go to other expenses that your family will experience. Mortgage life insurance also allows you to pick a coverage amount or length that factors in other financial responsibilities you want to cover, such children’s college tuition. Remember, your mortgage is the biggest debt you own. Make sure your loved ones are not left with that debt and no way to pay for it.
Pick The Right Insurance Provider
Since 1991, Asurea has been protecting families like yours throughout the nation. Working with an independent agent who has access to over 80 insurance companies, we can provide you with a policy you need to cover your mortgage at a price you can afford. We will make sure you understand every aspect of your insurance policy and answer any questions you may have. Your family will have a hard enough time dealing with your funeral, bills, losing you, grief and stress. Losing the home they shared with you should not be another blow. They deserve more. Contact us today at our office or visit our website and see how we can help you rest easy.