Mortgage life insurance has become a popular product mainly because it is marketed by mortgage companies, banks and some life insurance agents specializing in that field.
In its purest form, it’s just a life insurance policy where the insurance benefit follows the decreasing amount of debt on one’s mortgage. So, as your mortgage balance goes down, the amount of insurance you have goes down. These have a level premium but decreasing insurance year by year.
These days, these are less popular than level term life insurance for several reasons:You can buy level premium life insurance for 20 or 30 years, with guaranteed premiums without decreases in the life insurance benefit, usually at lower prices than mortgage life insurance. So, why get a policy that decreases in benefit?
By looking into life insurance , you’re taking an important financial step for those you love. The most important thing is to move forward and get the amount you should have so those people are taken care of, usually at least 10 times or up to 20 times your annual income.
Life Insurance Terms You Should Know Just like with lawyers, members of the insurance industry use unfamiliar terms when they discuss the various products they represent. Not because they’re smarter than anyone else, it’s just the nature of the industry. Certainly, anytime you’re speaking with an agent, you can … Continue reading Life Insurance Terms You Should KnowRead More
As a general rule, every type of insurance can be confusing, especially when a layperson listens to life insurance myths and attempts to read the content of an actual policy. Not because they don’t understand the concept of insurance, because most people do; but because policy information is typically written … Continue reading Life Insurance Myths DebunkedRead More
The amount of money that you pay every month for your life insurance policy is based on a number of different factors. You might be surprised to know that your driving record is one of them. Insurance companies are always assessing the risks involved in taking on a new policyholder. … Continue reading Like to Drive Fast? It Could Be Costing You in More Ways Than You ThinkRead More