Mortgage Life Insurance vs. Decreasing Term Life Insurance
Most people are under the impression that decreasing term life insurance is the best way to
protect your family if you have a mortgage. Not so. The best and cheapest way is to obtain
term life insurance for the term of your mortgage (mortgage protection insurance). For example,
if you obtain a mortgage for 30 years, you should get a life insurance term of 30 years. This way,
your family will get the entire amount of the mortgage if you happen to die within 30 years.
Level Term
This is renewable and convertible term life insurance for a specific time that features
substantial life insurance protection at a reasonable price.
Protection
- Initial guaranteed level premium durations of 10, 15, 20 & 30 years are available.
- At the end of the policy term, your premiums increase annually.
- The death benefit remains the same throughout the live of the policy.
- You can designate the proceeds to pay your mortgage.
Guarantees
- If you pay off your mortgage early, you can keep the coverage until the term your policy expires.
- Your policy's term of coverage is guaranteed to renew to age 95. Once in force, your policy will not be cancelled due to changes in health or occupation as long as premiums are paid when due.
Guaranteed Convertible
- Without providing evidence of insurability, your policy is guaranteed convertible until the end of the policy term (or age 70), to a Whole Life Policy.
Optional Coverages Available With Extra Premium
Terms as defined in the rider.
Return of Premium Rider
This rider rewards you for keeping the policy by giving a full return of total premiums
paid at the end of the term. After the first five years, a percentage of the premiums you
have paid will be returned if you cancel your policy prior to maturity. You can also
borrow from your Return of Premium Rider funds if needed.
Here's an example of coverage:
Benefits if you combine the Level Term policy with the Return of Premium Rider:
- If you die, your beneficiary will receive the death benefits, and the mortgage could be paid leaving your home free and clear for your family.
- If you keep the policy until maturity, you can receive a lump sum payment equal to every penny paid into the policy.
- You will receive a partial return of premium if the policy is canceled before the end of the term (depending on the year it's canceled - the longer it's kept, the higher the amount of return.)
- After five years, you will have a loan amount available that could be used to make your mortgage payment.
- Your level term coverage with this rider can be structured to mature prior to your mortgage loan, with the proceeds used to pay off your mortgage early and save you thousands of dollars in interest.
Accidental Death Benefit
- Pays an extra benefit if death is from accidental injury
Waiver of Premium
- Pays your policy premiums for you if you become disabled
Child Insurance Rider
- Economical protection for your children
Mortgage Protection Insurance