Mortgage Life Insurance!
What is MORTGAGE LIFE INSURANCE?
Mortgage protection life insurance is a type of term life insurance that is meant to pay off your mortgage in the event of a premature death when the mortgage principal is not fully paid. The original form of mortgage life insurance is essentially a decreasing term life policy where the premiums remain level and amount of coverage approximates the amount of the outstanding mortgage loan.
So as your mortgage obligation decreases do does your death benefit/coverage. The most affordable is the level premium, level benefit term life policy. This type of insurance can be purchased for a period of time such as 20 years, 25 years, 30 years. The insurance policy amount is guaranteed to not decrease and the premium can be guaranteed for the full period of time.
RETURN OF PREMIUM TERM LIFE INSURANCE TO COVER YOUR HOME MORTGAGE!
Recently, an increasingly popular method for mortgage term life insurance has emerged. Return of Premium term life insurance (ROP). This type of life insurance is term insurance with the added benefit that when you keep it for the full term (20 years, 30 years) you get a tax-free refund on all your premiums! This strategy offers you two guarantees:
1) The protection will be there to pay off your mortgage in your un-timely death.
2) But in the likelihood that you outlive your in-force term insurance policy, the life insurance company guarantees to return all the money that you paid on the policy tax free.
Because it is likely that you will live to the end of the term this type of mortgage protection term insurance is a practical approach.
If you are a home owner who smokes or chews tobacco you made need to go here and find out about the still affordable smoker life insurance policy types their rates and quotes.