Mortgage Protection Life Insurance and Other Life Insurance Options When Buying a Home
When you buy a house, chances are your mortgage brokers will try to sell you a mortgage protection life insurance policy. This is a mortgage life insurance policy through their own plan that actually protects the lender in case you die while you still owe them money. Don't be fooled--you will be paying for this policy, but they are the beneficiaries.
Fortunately, you have plenty of options when it comes to providing your beneficiaries with a means to pay the mortgage should you die before it's paid off. You, too, can be protected with a term insurance policy in case your spouse dies, if his or her death would affect your ability to make mortgage payments. Taking out a mortgage protection life insurance policy where you or your family are the beneficiaries of the policy ensures that the death benefits are kept in the family for your survivors to use as they see fit. They could use it as mortgage life insurance, or pay for other expenses instead.
At Spectrum Direct, we offer a variety of life insurance products that are customized for your needs and budget. After you gather the information you need from our website, feel free to contact us with questions. Or, you can request an instant rate quote online.
How Personal Insurance from a Broker Differs
Mortgage life insurance is actually a term insurance policy that is in effect for a certain length of time. If you were buying it to cover your mortgage, you would get a policy that matches the amount and length of your mortgage payoff period, such as 20 or 30 years. It would only pay if something happens to you (or your spouse, if you are both insured).
Your mortgage broker will act as if he or she is doing you a favor by offering this insurance, when in reality the mortgage company would benefit. Getting your own life insurance plans puts the control back into your own hands. You can get your own customized mortgage protection life insurance policy that fits your own family's needs, rather than a policy that is the same for all of the mortgage company's clients.
Then your survivors could spend the death benefits on things they need to pay for, including the mortgage. With mortgage protection life insurance from a lender, the mortgage would be required to be paid first. That is true even if your family needed the money for other expenses. Get your free rate quote today from spectrumdirect.com.
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