Many of our clients are bombarded with mailed solicitations for the purchase of Mortgage Life Insurance. A common question they ask us, particularly those for whom we write homeowner’s insurance, is:
"Do I need, or should I get, Mortgage Life Insurance?”
Our short answer is that, like much life insurance, Mortgage Life Insurance can be helpful in the right circumstance. However, there may be far better alternatives for you and your family.
Let us share 5 reasons why you should speak to E & K about Term Life Insurance, as compared to Mortgage Life Insurance, if you are concerned about how to leave your family without the worries of a mortgage should something happen to you.
- Unlike most Mortgage Life Insurance, with Term Life Insurance your coverage amount will not decline as your mortgage balance declines.
- Your family may use the proceeds of Term Life Insurance for whatever they deem necessary. This may be to pay off your mortgage, but it doesn’t have to be. Your family may use the proceeds for other important household, medical or college expenses It’s nice to have that flexibility when you never know what life may throw at you.
- As the owner of your Term Life Insurance, you can pick the beneficiaries. The beneficiary doesn’t have to be the bank holding your mortgage.
- Even though you pay the premiums of a Mortgage Life Insurance policy, the bank, not you, usually owns the policy and is the beneficiary – not your family.
- You may have to replace your Mortgage Life Insurance policy if you refinance your home. Aside from being a pain, health changes may make you less insurable in the future. With Term Life Insurance, you don’t have to replace your policy just because you refinance your home.
Let E & K help you make the best life insurance decisions for your family. We can help you structure protection with the flexibility you want that makes sense with your budget.
Please call us to speak to one of our life insurance professionals and, as always, thank you for giving E & K the opportunity to service your insurance needs.
This is not an offer of coverage or a solicitation of insurance to anyone outside of the State of New Jersey. Policy descriptions provided here are not statements of contract. Please refer to the policy forms for full disclosure of all benefits and limitations. Please note that any life insurance offered by insurance companies through E & K as an agent of the companies is not a deposit, not FDIC or NCUSIF insured, not guaranteed by the institution, not insured by any federal government agency and may lose value.