Why Most Families Would Benefit from a Term Life Insurance Policy Instead
The idea of having a mortgage-free home if you die or cannot work may sound attractive, but it doesn’t mean mortgage life insurance is the best way to achieve this.
By and large, most people would be better off purchasing a term life insurance policy big enough to cover their mortgage and provide for every other need which might arise.
Here are five reasons you should seriously consider term life insurance instead of mortgage life insurance:
Term life insurance is usually cheaper.
Most of the time, term life insurance costs considerably less than the mortgage life insurance policies you’re offered when you take out a home loan. If you want to find out how much you might pay, fill out the form at the bottom of this page for an instant quote.
You’ll get a fixed payout.
With traditional term life insurance, you’ll receive a fixed cash payout regardless of when your family files a claim. Since mortgage life insurance only pays off your mortgage, your benefit will naturally decline as you pay off your loan.
You can get a policy big enough to cover your mortgage, replace your income, and provide for your family.
If paying off the family mortgage is a priority, you can buy a term policy big enough to pay off your home and provide a cash benefit to your family.
You won’t be penalized for paying off your mortgage faster.
With mortgage life insurance, your benefit goes down with each month you pay down your mortgage. In this respect, paying your house off early exacts a penalty which could cost your family money. With traditional life insurance, one the other hand, you’ll get a set benefit which won’t change if you decide to pay off your home early.
Term life insurance provides your family with cash they can use in whatever way seems fit.
The biggest benefit you’ll get with traditional life insurance is the fact your family will receive cash they can control. If they want to use the funds to pay off your mortgage, they can certainly do so. But since you may not know how your family’s needs might change in the next five, ten, or twenty years, it’s nice to provide your family with cash they can use as they please.
Article By: Ryan Guina from cashmoneylife.com