Mortgage life insurance offers typically come by way of snail mail, with urgent messaging such as “Last Chance!” or “Secure Your Insurance Now!”.
Homeowners are encouraged to fill out a simple form without much of the information needed to make an informed decision, and that can lead to wasted money in the form of premium payments.
Before jumping to sign up for a mortgage life insurance policy, consider evaluating your options for term or permanent life insurance, comparing the cost, coverage, and ancillary benefits that may come with each.
Purchasing life insurance is a sound choice for many families who own a home that has a mortgage balance. Having some protection for surviving beneficiaries is helpful in managing the financial needs that come from the loss of income of a household member. However, it is crucial to understand the type of policy that is being purchased and how to ultimately benefits the family should someone pass away.