Your home is probably one of the biggest investments that you will ever make in your life, and you probably want to make sure that it is protected no matter what. Mortgage life insurance is definitely something to think about, but you should research your options before signing the dotted line. Many lenders encourage buyers to invest in mortgage life insurance through the bank or mortgage company, but this isn’t always the best option. By exploring mortgage protection life insurance, you can learn more about which policy is best for you.
What is Mortgage Life Insurance?
When you purchase a home, you probably assume that you will live in it forever. Unfortunately, you never know what could happen, and something could happen to you before you are able to make your final payment. If you leave a steep mortgage behind to your spouse or children, they might struggle and even lose the house. This is where mortgage life insurance comes into play.
Mortgage life insurance is a policy that you pay on to ensure that your home will be paid off if you pass away. It is designed to ensure that your loved ones won’t end up without a home if something happens to you before you are able to pay off your home. This type of coverage is generally offered through banks and lenders, but you can opt for a private policy as well.
Do You Need Mortgage Life Insurance To Pay Off a Mortgage?
Although you might not want to think too far into the future when you buy your house, you have to make sure that your home and family are protected. No matter how young you might be, you have to think about the possibility of something happening to you during the term of your mortgage. If you fear that your family wouldn’t be able to cover the mortgage if something happened to you, mortgage life insurance is a necessity. If you look for the best possible rate, you will find that coverage doesn’t cost much. However, this coverage can be priceless if your family is in need of help with paying the mortgage.
How to Find Mortgage Life Insurance Rates?
When you go to purchase a home, chances are good that your lender will recommend getting life insurance to cover the mortgage. In many cases, you can get it for a reasonable rate through your lender, but this doesn’t mean that you should sign up right away. Instead, you may want to consider investing in a 20 year term policy or 30 year term life insurance policy through a private company instead.
Here are a few reasons to consider looking for the best mortgage protection insurance that you can get through a private company instead of through your lender:
- In many cases, people don’t realize that they can get these policies through a private company instead. This means that many lenders charge higher rates for their coverage than what you would pay otherwise. If you want to find the most competitive rate, it is often a better option to seek this coverage through a private insurer.
- If you opt for mortgage life insurance through your home lender, the bank will be listed as the beneficiary for your policy. This means that all of the proceeds will be paid to the lender in the event of your death. Although the mortgage will be paid off, there will be no other money on hand for your loved ones to use. At the time of your death, your family might have more pressing issues to deal with than paying off the mortgage, but they won’t be able to handle these things with your life insurance policy if it is through a bank. On the flip side, you can list your spouse or children as the beneficiary for the funds with a private insurance company. Then, the money can be used for whatever your loved ones might need it for.
- Since the insurance premium is often included in the home loan, mortgage life insurance through the lender is typically subject to finance charges. This can cause the rates to be much higher than they would be if you purchased the coverage individually.
- When you opt for a policy through your lender, the life insurance stays with your house. With regular term life insurance, however, the policy is transferable.
Some people are under the impression that mortgage life insurance is the best option for them if they are in poor health. Luckily, it is possible to find mortgage life insurance with no medical exam, but the face value will be a bit lower. Although you might find that gaining this coverage through your lender is the best option for you, you should definitely look at a few quotes first. You might be surprised to find that term life insurance is a more solid option for you, regardless of what your situation might be.
Tips for Comparing Mortgage Life Insurance Rates
As you can see, investing in this type of coverage is a smart idea if you want to protect your family and your home after you are gone. Although the process of shopping for insurance can seem overwhelming and confusing, following these tips will help you get the coverage that you need.
- Determine what type of policy you will be able to get. If you are between the ages of 20 and 65 and are in good health, you might be able to qualify for coverage without a medical exam. Older seniors and those who have some health issues shouldn’t worry, however; some companies are a bit more lenient than others, and the medical exam will be paid for by the insurance company. You shouldn’t assume that you can’t get coverage; although rates do vary based on a number of factors, there are a lot of term life insurance companies out there that will work with you.
- There is no reason to pay too much for this coverage when there are so many cheap mortgage life insurance rates out there. Before signing up for a policy, make sure that you know what your options are. Comparing several different mortgage life insurance companies before signing up is always a smart idea; then, you can lower your rates without decreasing your coverage.
- Sit down and think about how much coverage you need and how long your term should be. You will want enough money to cover the mortgage on the home, and you will probably want to choose a term that is long enough to last throughout the mortgage period for your house. Choosing the right level of coverage is essential if you want your home to be protected.
- Choose someone to be responsible for the benefits from your policy. Since you are opting for private insurance, you don’t have to choose the lender to be the beneficiary for your policy. Instead, you can choose your spouse or children.
How to Find a Good Mortgage Life Insurance Policy
We are dedicated to helping people who need insurance. Not only are we licensed to sell term life insurance in several different states, but we also provide burial insurance and whole life insurance. Along with learning about other types of coverage, you can use our easy-to-use website to find out more about the best mortgage life insurance companies. We work with top-rated insurers and strive to provide you with the best and most affordable coverage, and you can use our site to compare companies, policies, and rates until you find the best option for you. To get started, simply input your info into the form at the top of the page. In minutes, you will have quotes from all of the best companies that will offer coverage to you.
Insurance is one of those products that we do not appreciate until we need it. But there are a lot of people that like to plan ahead and protect themselves and their families by making sure that they have plenty of insurance coverage. During the course of life, challenges can come up that often make certain things more difficult. If you are getting ready to close on a home but you fear that you may not be able to get mortgage insurance because of a pre existing health condition, then you need to know your options. There is mortgage life insurance with no medical exam that people can look into which will help them get the coverage they need regardless of their medical situation. It can offer significant peace of mind to people that want to plan for their family’s future.
How to Find Mortgage Life Insurance Rates
You can use the comprehensive quoting tool at SmartTermQuotes.com to find pricing on a wide range of mortgage life insurance rates with no medical exam. You will get to see the guaranteed and simplified insurance products that a variety of companies have to offer. Then you can use your own term and benefit needs to start getting a range of prices to consider. When you use a good quoting tool, you will get to see all of the options that insurance companies have to offer. If you need insurance but cannot pass a medical exam, then it is helpful to know that these kinds of options exist and that you can provide adequate protection for your family.
The right mortgage life insurance product has a term that is the same as the term of your mortgage. The death benefit starts out matching the overall value of your home loan, but that benefit drops as your mortgage drops. You will always have the insurance you need, but you will never pay for insurance you do not need. The fact that you can get this kind of coverage without having to go through a medical examination means that you can still help your family regardless of your situation. It can allow you to go ahead and purchase that new home with confidence and help your family to realize its dream.
Good mortgage life insurance rates are easy to find with the