What is Mortgage Term Life Insurance?

The house you live in is more than a piece of real estate. It's your family's home. Mortgage term life insurance pays off your mortgage in the event of your death.

The original type of mortgage term life insurance followed the amount of the mortgage balance so, as your mortgage decreased, so did the amount of insurance. This was called decreasing term.

Today it usually makes more sense to get mortgage term life insurance equal to the original mortgage amount but instead of a decreasing amount of insurance, you simply get the most inexpensive level term insurance.

Why is Mortgage Term Life Insurance so important?

Because death isn’t just a risk, it’s a guarantee.

Most people don't like to think about it, but planning ahead is the only way to ensure that one tragedy doesn’t lead to another. Mortgage term life insurance isn’t just important, if you want to protect your family and your home, it’s absolutely vital.

Recently it has become more common to buy Return Of Premium Life insurance. With return of premium, if you keep the policy, you get all the payments paid back to you at the end of the term period. The most affordable is the level premium, level benefit term life policy.

This type of insurance can be purchased for a period of time such as 15 years, 20 years, 25 years and 30 years. The policy amount is guaranteed not to decrease and the premium can be guaranteed for the full period of time.