Life Insurance Or Mortgage Life Insurance

Life Insurance Or Mortgage Life Insurance



Life Insurance Or Mortgage Life Insurance?
Buying your house is​ a​ huge investment,​ and purchasers are finding that life insurance is​ a​ more flexible and less pricey alternative to​ the​ mortgage life insurance they buy from a​ bank .​
This makes life insurance another brick in​ the​ foundation of​ a​ good financial plan.
What's Wrong With Mortgage Life Insurance ?
When people are in​ discussions with banks to​ finance their home they are asked if​ they want to​ have their home paid off if​ they die? Well who would say no to​ that? Unfortunately,​ people don't look at​ other options that are open to​ them or​ shop around for different rates .​
When mortgage insurance is​ purchased through a​ bank,​ the​ coverage decreases as​ the​ mortgage is​ reduced; however the​ premiums stay the​ same .​
What this means is​ the​ cost of​ the​ coverage goes up as​ you​ are paying down your mortgage .​
Additionally,​ while mortgage life insurance pays off the​ loan's outstanding balance,​ only the​ bank gets paid .​
You get the​ house,​ but no cash.
Life Insurance to​ the​ Rescue !
Life insurance can help relieve that debt while also adding cash value to​ your estate for your beneficiaries .​
Owning your own life insurance gives you​ these options:
Life insurance is​ portable,​ meaning you​ don't have to​ re qualify for coverage during the​ term if​ you​ buy a​ new home or​ switch mortgage providers.
Renewable and convertible .​
a​ renewable and convertible life insurance policy can be converted to​ a​ permanent product at​ any time without a​ medical exam .​
In contrast,​ if​ your mortgage life contract runs out at​ a​ bank,​ you​ will be older and potentially facing higher term life insurance rates .​
Life Insurance Decisions
When you​ are comparing group mortgage life insurance from a​ bank and life insurance that's personally owned,​ you'll see that it​ is​ cheaper to​ have your own life insurance.




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