There was a time not many years ago when there was one type of mortgage life insurance you could purchase, which was simply the declining insurance that continued to decrease as your mortgage decreased. This meant that if you lived in the house 30 years, and owed just $2000 on the mortgage, that is how much the life insurance policy would be for, it was ever declining. There are some companies that still market this type of mortgage life insurance but there are much better options available.
Today, you can purchase a more traditional life insurance policy that is specifically for your mortgage. In other words, you can purchase a level premium policy, which is affordable and you can purchase it for a specified number of years, such as 30 years. The nice thing about this policy is it guarantees you that the policy amount you purchased will not decrease as your mortgage decreases. In addition, you can also have the premium set to a specific amount that is unchangeable over the course of the policy.
Another mortgage life insurance policy that is becoming very popular is the Return of Premium Insurance plan. With this policy, it does not decrease and if you set the policy up for 20 years and your mortgage is paid off and you are still living, you get all of the premium payments back that you made over the course of the policy and it is tax free money. You can do anything you want with the money. It is like having a little savings you are putting aside for 20 or 30 years. No matter how low your premiums are, they add up over the course of 20 to 30 years, so this would be a little reward money for paying off your mortgage and policy. If you cannot afford the return of premium policy, then the simple decresing term insurance or mortgage protection policy would be beneficial to you and your family regardless, its one type of peace of mind that makes sleeping at night a bit better.
Today, you can purchase a more traditional life insurance policy that is specifically for your mortgage. In other words, you can purchase a level premium policy, which is affordable and you can purchase it for a specified number of years, such as 30 years. The nice thing about this policy is it guarantees you that the policy amount you purchased will not decrease as your mortgage decreases. In addition, you can also have the premium set to a specific amount that is unchangeable over the course of the policy.
Another mortgage life insurance policy that is becoming very popular is the Return of Premium Insurance plan. With this policy, it does not decrease and if you set the policy up for 20 years and your mortgage is paid off and you are still living, you get all of the premium payments back that you made over the course of the policy and it is tax free money. You can do anything you want with the money. It is like having a little savings you are putting aside for 20 or 30 years. No matter how low your premiums are, they add up over the course of 20 to 30 years, so this would be a little reward money for paying off your mortgage and policy. If you cannot afford the return of premium policy, then the simple decresing term insurance or mortgage protection policy would be beneficial to you and your family regardless, its one type of peace of mind that makes sleeping at night a bit better.
