2. More Flexibility
When you buy a term policy you can kill two birds with one stone because you will be buying insurance protection to not only cover the mortgage but to also to provide your family with income replacement at the same time. Even if you have mortgage insurance you still need life insurance anyway, so why bother with 2 policies and 2 premiums when you can lump your overall insurance protection into one convenient policy.
3. You Are the Beneficiary – Not the Bank
With mortgage insurance, the lender is always the beneficiary, not you. With a term life insurance policy you choose who you want as the beneficiary. The death benefits are paid directly to the beneficiary you name on the policy and they receive it as a lump sum payment that is non-taxable.
This gives your survivors much greater flexibility in that they can use the proceeds as they need to use them. They can use the proceeds to pay off the mortgage or continue to use the money to make mortgage payments if they choose to remain in the house.
4. Term Life Insurance is Generally Cheaper than Mortgage Insurance
The additional advantage of a term policy is that it is generally cheaper than what you will likely pay for mortgage life insurance. A term life insurance policy generally requires that you take a medical exam. Life insurance policies which require a medical exam are almost always cheaper to buy than those which don’t require a medical exam so you can either save money or opt to use the additional cost that you would have spent on mortgage insurance to buy more coverage.
Overall, term life insurance is the better way to go because it is more affordable and gives your family better protection. At the same it goes into the pockets of your loved ones and not the bank.
Where Can I Find Affordable Term Life Insurance?
You always want to talk to an independent agent like myself. We can access and research dozens of companies so you are assured we will find the best policy at the most affordable rates. If you have health concerns, don’t let that dissuade you because we can give you valuable advice and help you to find a policy that suits you.
Whatever your needs or questions then please call me direct at 877 – 966 – 9383.