The concept of mortgage insurance is, if you die, mortgage insurance will pay off your loan. The best way to do this is with life insurance.
In one of the earlier articles, we spoke about the different buckets that you can fill that made up the total amount of life insurance you’d want. One of those buckets is debt, which would include your mortgage.
But if you want to look at your mortgage specifically, a term insurance policy covering the amount of time left on your mortgage would suffice, i.e. 15, 20, or 30-year policy.
As an example, a 30-year old female that wanted to take out a $500k policy to cover her mortgage would pay about $30/month for a 20-year term policy. Male and female rates do vary when it comes to life insurance, so a male looking for the same coverage would be about $38/month.
Another reason you would want to have mortgage insurance is to protect your family. If something were to happen to you, your spouse or the children may not be able to afford the mortgage on their own and they could lose the house.
That is why mortgage insurance exists to protect you and your family from these unfortunate events.
If you’re in the market for mortgage insurance, make sure to get a quote from me. I can help protect your home and family. Let’s discuss how this type of coverage could be right for you today!
– Frank
Call: 732.566.0003 • Email: [email protected]