Trends in Mortgage Life Insurance
November 5, 2007 by Van Dorst
Filed under Insurance Trends, Life, Mortgage Life Insurance
Mortgage life insurance pays off your mortgage in case of death while your mortgage is not yet fully paid. Mortgage life insurance is sometimes called ‘mortgage protection insurance’ or ‘mortgage protection life insurance’.
In traditional mortgage life insurance, the amount of your insurance payout decreases as your mortgage obligation decreases over the years. However, nowadays you can choose a life insurance with a payout equal to your original mortgage, i.e a term life insurance. Most term policies are inexpensive compared to traditional mortgage life insurance, so it makes sense to do so.
An affordable choice is the ‘level premium, level benefit’ term life insurance. This insurance policy amount does not to decrease – guaranteed. The insurance premium can also be guaranteed for the duration of your specified insurance term, of say 20, 25, 30 years. You still have your insurance policy pays off your mortgage in case of death.
The latest trend in mortgage protection life insurance field is the increasingly popular
‘Return of Premium Term Life Insurance’. This is a term insurance has a unique benefit: when you keep the policy for the full term, you get back all the premiums that you paid on the policy. If that wasn’t enough, because they are considered a return of what you put in, they come back to you tax free!
The appeal if this mortgage term life insurance is that it benefits you both ways. This insurance pays off your mortgage in the less likely event of your death. In the more likely event that you will live at the end of your policy term, you’ll receive your premiums back tax-free. And for those of us who have a hard time saving: this moneu will come back to you at the right time to help you enjoy your retirement!
By Van Dorst, BeSafeInsure.com, 2007 – copyrighted – all rights reserved.
