Who Should Use Mortgage Term Life Insurance
The purpose of insurance is to have protection again risk. Two things that are certain, death and taxes – we will all die one day. No one knows exactly when that time will be, and most of us avoid talking about or planning for death, but death is something we must all face one day. Mortgage Term Life Insurance is designed to offer financial protection against dying to soon and leaving loved ones with a financial obligation they can’t afford to pay off.
For most people their home is their greatest asset. And for most people when they purchased their home they took out a mortgage, which has to be paid in full every month until the note is paid off, usually thirty years down the road.
Let’s assume that a married couple with two kids purchase a home for $100,000. Life is going great and everything is running smoothly. Unfortunately, one day the wife receives a phone call that her husband has passed away in an auto accident on his way home from work. Without mortgage term life insurance this fatherless family will be without a home unless they have $100,000 in savings.
For a 35 year old male, a mortgage term life product for $100,000 death benefits in most cases will be less than $40 a month on the high end, and even less for discount life insurance. It is wise to have that peace of mind to know that your family is protected if something were to happen to you. Even if you have $100,000+ stacked away, it would be much smarter to pay the small premium for a Mortgage Term Life Insurance product. The most important thing is to have mortgage term life insurance on those in your household whose income is needed to keep the home running. A loss of income could have a substantial affect on a family.
So who should use mortgage term life insurance? Anyone who has a mortgage and would like to leave their home to a loved one or someone other than the bank after they pass away.
photo credit: ElArreglador