As a home buyer, you’ve probably heard about mortgage life insurance. If you’re wondering whether or not you need this policy, here’s a guide to help you make the right decision.
When you take out a mortgage, you can expect to be asked if you want to purchase mortgage life insurance. While this can come in several forms, it is designed to cover your mortgage loan payments if you:
- Die prematurely
- Become disabled
- Develop a critical illness
- Lose your job
If you are the primary or sole breadwinner of your home, then you may want to seriously consider purchasing mortgage life insurance, as this will ensure that your family will remain financially stable and they’ll always have a roof over their heads.
Take Care of Your Family’s Needs With 20/20 Mortgage Life Insurance
At AIME, we have developed an affordable, flexible, and customizable mortgage life insurance policy that has been designed to work for YOU. From being able to choose your own beneficiary, to take your policy with you even if you switch lenders, 20/20 MLI always works in your favour.
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Mortgage Life Insurance: Should You Buy It?
If you are considering purchasing mortgage life insurance, you’re probably wondering if you would benefit from such a policy, or if it's just another expense that may not add value to your life. The answer really depends on your health, financial situation, and what you want to happen if you were to die unexpectedly. To help you make the right decision, here are the pros and cons of mortgage life insurance, along with tips on figuring out if this is the right policy for you.
What exactly is Mortgage Life Insurance?
Mortgage life insurance is a form of life insurance that has been designed to pay off your mortgage in full, should you die unexpectedly, thus leaving your spouse and other family members unencumbered by a mortgage.
How much does mortgage life insurance cost?
The cost of mortgage life insurance depends on several factors such as:
- The amount of your mortgage
- Your age
- Your health
In addition to this, the cost of your policy will vary if you want to add riders such as disability or critical illness coverage, that will cover your mortgage for a specific period if you are unable to work due to illness or an accident.
Keep in mind: A disability or critical illness coverage is typically only for a certain period and there may be a waiting period before the payments kick in, so be sure to read and fully understand your policy.
Is Mortgage Life Insurance Right For Me?
If you are considering whether or not mortgage life insurance is right for you, you should be aware that it is often recommended for people who:
- Are insurable at a high rate due to health issues, since MLI doesn’t require a medical exam or extensive underwriting.
- Have high-risk occupations, such as construction workers, who usually cannot get disability insurance.
- Cannot afford the high rights of whole life or term life insurance.
- Are recently married and planning to start a family.
- Looking for a simple and transparent insurance process without extensive medical questions.
Choosing and Saving on Mortgage Life Insurance
If you have health or job risks that make life or disability insurance too expensive, then mortgage life insurance could be a smart option for you. BUT don’t sign up for a policy without shopping around!
To find the right policy for you at the right price, you may want to consider talking to a licensed insurance agent. These individuals can:
- Guide you through the entire process and find you a policy that perfectly suits your needs.
- Inform you of any application updates so you know where you are in the process.
- Discuss multiple types of insurance with you to ensure you are protected in all worst-case scenarios.
- Navigate you through the complexities of purchasing insurance so you don’t face any nasty surprises.
Call One of our 20/20 Licensed Agents
If you want to learn more about mortgage life insurance, and how this product can help protect your loved ones and your family home, contact one of our licensed agents today at 1-844-974-2020 or fill in our online contact form.
