Term Life Insurance Vs Bank Mortgage Insurance

Term Life Insurance Vs Bank Mortgage Insurance



Term Life Insurance Vs Bank Mortgage Insurance
Possibly most people today are aware of​ the​ great difference between term life insurance and bank mortgage insurance .​
People know that the​ bank owns the​ insurance (you don't) you​ have to​ pay for it​ (they don't) they are the​ beneficiary (your heirs are not) and it​ goes on​ and on.
Term Life Insurance
But apart from those good reasons,​ remember also that most bank mortgage life insurance is​ a​ lot more expensive .​
But it​ is​ not only more costly in​ dollars,​ it​ is​ also a​ lot more expensive in​ human anguish.
Term Life Insurance Comparison
Take your own situation or​ the​ situation of​ a​ friend that fits this scenario .​
Married with children,​ one spouse dies suddenly .​
The family has the​ normal comittments of​ daily living expenses all of​ which continue.
But what does the​ bank do,​ if​ you​ have bought their plan and not term life insurance? They pay off the​ mortgage but leave no money for the​ family's every day needs!
If this couple had bought term life insurance,​ the​ survivor would have the​ money to​ continue to​ pay the​ mortgage as​ well as​ being able to​ look after the​ family.
Term Life Insurance Continues
Again,​ assume there had been a​ term life insurance policy and the​ mortgage had been obtained at​ favorable rates .​
Compared to​ today,​ it​ would have been very financially advantageous NOT to​ pay off the​ mortgage .​
Because now,​ if​ the​ survivor needs to​ take out another mortgage to​ continue the​ same standard of​ living,​ interest rates are higher along with the​ monthly payments.
You need to​ think carefully about term life insurance and bank mortgage insurance.
- you​ the​ owner and not the​ financial institution,​ own the​ insurance policy
- Your policy is​ created specifically for your needs
- You,​ not the​ bank,​ decide if​ you​ wish to​ cancel
- you​ choose your own beneficiary; the​ bank is​ not the​ beneficiary
- you​ don't have to​ worry about your term insurance premiums increasing
- you​ decide whether to​ continue with the​ insurance if​ you​ sell the​ house
- Your policy is​ renewed up until the​ end of​ the​ period you​ select not what the​ bank selects
- Your policy amount remains the​ same,​ but not the​ banks policy
- you​ choose how to​ spend the​ money instead of​ the​ bank
- you​ can keep your policy even if​ you​ move the​ mortgage
- you​ pay less! you​ will pay as​ much as​ 40% less for your term life insurance policy.




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