You believed you were done with signing all the paperwork for your new home, then all of a sudden your realtor hands you a mountain of insurance paperwork requiring you to confirm you are healthy and offering to pay off your mortgage in the event of your death. Like most people, you go ahead and sign up thinking little of the additional cost. After all, compared to what you have already taken on with your new mortgage, it is chump change. Unfortunately, that was a mistake. What you did not realize was that if you had taken the time to get a personal mortgage life insurance quote from an independent company, it would've likely cost much less, as well as offered coverage that would protect you and your loved ones. Instead, you have signed up for a plan tailored by your lender to protect their interests, not yours.
When you purchase mortgage life insurance from your mortgage lender, you are enrolling in a group policy between the lender and an insurance provider. You and your loved ones are not the focus of this coverage; it is designed to protect the lender with a minimum risk to the insurer. That means that any benefits you get as a member of the group, such as having the piece of mind that your mortgage will be paid off in the event of your death end, if you stop making payments, or decide to refinance your home with another lender.
A personal mortgage life insurance policy is yours regardless of which bank or lender holds your mortgage. Mortgage brokers are required to offer their companies mortgage life insurance plan to their clients, but the more ethical brokers will often encourage their clients to seek out several quotes from independent mortgage life insurance providers in addition to the one their company provides. Some may even be upfront enough to tell their clients that if the policy they find is adequate, they will not need the one offered by the lender.
People who buy a home should look for independent insurance agents to provide quotes and bid on their business. Mortgage life insurance from a lender ensures a declining balance for the same or larger premium than you would receive from a private insurance provider. Private insurance remains level in order to protect you and your loved ones if the worst happens. Buyers should seek to have coverage for all of their debt. First time home buyers, who tend to be younger and make larger purchases, are significantly increasing their debt load. If the worst happens, their loved ones may have to suffer not only the loss of the individual, but may find themselves homeless as a result.
If that is not enough, consider this. Should you decide to make extra payments and pay off your mortgage early, your contract with your lender is fixed, but what happens to all of that extra money if you do die? That is right, the lender is the beneficiary of that policy-not your loved ones. This means that every additional penny in that policy goes directly to the mortgage bank and does not benefit your loved ones at all. With mortgage life insurance from an independent insurer, that is not the case. Your loved ones will receive the additional funds.
What Should I do?
You should start out by determining if you even need more insurance coverage than what you currently have. You need to evaluate your insurance situation as a whole, as opposed to a bunch of individual situations. You do not want to purchase too much or too little coverage. Your goal should be to purchase adequate life insurance to cover additional likely expenses in the event of your death, including your own funeral, and other outstanding debts that you do not want passed on to your loved ones. Mortgage Life Insurance through your life insurance company is term life insurance in the amount required to cover your mortgage. However, the main advantage is that you decide who your beneficiaries will be, not your mortgage lender.
Secure your home for your family and start saving money. Receive a free no obligation Mortgage Life Insurance Quote Today!
When you purchase mortgage life insurance from your mortgage lender, you are enrolling in a group policy between the lender and an insurance provider. You and your loved ones are not the focus of this coverage; it is designed to protect the lender with a minimum risk to the insurer. That means that any benefits you get as a member of the group, such as having the piece of mind that your mortgage will be paid off in the event of your death end, if you stop making payments, or decide to refinance your home with another lender.
A personal mortgage life insurance policy is yours regardless of which bank or lender holds your mortgage. Mortgage brokers are required to offer their companies mortgage life insurance plan to their clients, but the more ethical brokers will often encourage their clients to seek out several quotes from independent mortgage life insurance providers in addition to the one their company provides. Some may even be upfront enough to tell their clients that if the policy they find is adequate, they will not need the one offered by the lender.
People who buy a home should look for independent insurance agents to provide quotes and bid on their business. Mortgage life insurance from a lender ensures a declining balance for the same or larger premium than you would receive from a private insurance provider. Private insurance remains level in order to protect you and your loved ones if the worst happens. Buyers should seek to have coverage for all of their debt. First time home buyers, who tend to be younger and make larger purchases, are significantly increasing their debt load. If the worst happens, their loved ones may have to suffer not only the loss of the individual, but may find themselves homeless as a result.
If that is not enough, consider this. Should you decide to make extra payments and pay off your mortgage early, your contract with your lender is fixed, but what happens to all of that extra money if you do die? That is right, the lender is the beneficiary of that policy-not your loved ones. This means that every additional penny in that policy goes directly to the mortgage bank and does not benefit your loved ones at all. With mortgage life insurance from an independent insurer, that is not the case. Your loved ones will receive the additional funds.
What Should I do?
You should start out by determining if you even need more insurance coverage than what you currently have. You need to evaluate your insurance situation as a whole, as opposed to a bunch of individual situations. You do not want to purchase too much or too little coverage. Your goal should be to purchase adequate life insurance to cover additional likely expenses in the event of your death, including your own funeral, and other outstanding debts that you do not want passed on to your loved ones. Mortgage Life Insurance through your life insurance company is term life insurance in the amount required to cover your mortgage. However, the main advantage is that you decide who your beneficiaries will be, not your mortgage lender.
Secure your home for your family and start saving money. Receive a free no obligation Mortgage Life Insurance Quote Today!
