For instance, mortgage insurance is usually purchased from the bank or financial institution that’s lending the money which is then added on to your monthly mortgage payments. Mortgage insurance is typically more expensive than life insurance, though it is very convenient to purchase at the same time as your mortgage – and your premiums remain the same for the length of time that you’re insured, however keep in mind that the potential pay out shrinks as the mortgage is paid down.
With a term life insurance product, you’re protected for the duration of the policy – whether it’s a 10, 20 or 25 year term for instance, and same as mortgage insurance – your premiums remain the same, the difference here is that you decide which term duration suits you depending on your needs and expenses and most importantly – the amount of money that’s paid out to the beneficiary never changes, even as you pay down your mortgage- it does not decrease.
In either case the purchasing mortgage insurance or a life insurance policy is there to protect your family financially should you suddenly pass on so that payments continue. Mortgage insurance decreases in payout while a term life insurance policy does not and it can also be applied to whatever other expenses the beneficiary chooses to cover not just for the mortgage.
Buying a home and having a mortgage is enough stress as it is, and will most likely be the largest purchase that you will ever make, so it’s important to take the time and have some security in place.
A tax-free benefit of a life insurance policy may provide you with this peace of mind, and can make all the difference in the world for your loved ones.
