Insurance is a very effective way of managing risks. When you buy insurance, be it mortgage life insurance or term life insurance, you transfer the cost of a potential loss to a company in exchange for a fee (premium). The company then invests the funds securely so it can grow and pay out when there’s a claim.
Depending on which type of insurance you purchase, it can help you:
- own a home
- financially protect your family in case you become unexpectedly ill or disabled
- provide for your loved ones in the event of a death
- take vacations without worrying about the costs of flight cancellations and lost baggage
- cover health care costs (eg. dental check-ups, vision care, and prescription drugs)
Get the Financial Protection You Deserve with 20/20 Mortgage Life Insurance
At AIME, we understand just how important it is to keep your family financially secure. That’s why we offer affordable and flexible mortgage life insurance, as well as disability and critical illness coverage, to ensure that your loved ones are protected, no matter what life throws your way.
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Life Insurance 101: 3 Different Types of Insurance Explained
What type of life insurance is right for me? That is one of the most common questions asked when buying a policy and the answer depends on a variety of factors including what you want to protect, how long you want the policy to last, and how much you want to pay.
To help you get started on the process, here are 3 different types of insurance explained:
1. Level Term Life Insurance
Level Term Life Insurance is a type of life insurance that pays out an agreed-upon lump sum if you pass away within the policy period. The term is agreed upon when you take out the policy and so long as you keep up with your payments, your beneficiary will receive a guaranteed amount of money upon your passing away.
How do I know if it’s right for me? If you have a spouse or family and they rely primarily on your income, then level term life insurance could be right for you.
Because the amount is agreed upon up front, and it’s fixed, your family can use it to:
- pay off the mortgage on your family home
- fund your child(ren)’s education and university fees
- pay off any personal loans
- cover your funeral costs
Most of all, level term life insurance can protect your family from any financial burdens that might be passed on to them in the event of your death, ensuring that they can enjoy their future without worrying about money.
2. Mortgage Life Insurance
If you’re a homeowner, you’ll likely know that your mortgage is one of your biggest sources of debt, so it’s important to protect it. A mortgage life insurance policy is designed to pay off your mortgage in full in the event of your unexpected demise.
This will free your family from worrying about making any payments and offers them the peace of mind that comes with knowing they’ll always have a roof over their heads.
How will I know if a mortgage life insurance policy is right for me? If you are wondering whether or not you need an MLI, then you should ask yourself the following questions:
- If you die unexpectedly, who will shoulder the huge debt of your mortgage? If it’s your spouse, will they be able to manage it alone?
- Can your family afford to pay the mortgage without your income?
- Do you have enough life insurance to cover the mortgage in the event of your death?
- How many years left until your mortgage is paid off?
- Are the monthly mortgage life insurance premiums within your budget?
3. Disability and Critical Illness Insurance
When you purchase mortgage life insurance, you know that no matter what happens, your family home will be secured. However, death is not the only thing that can jeopardize a family’s finances. What about if you became suddenly ill or disabled and you weren’t able to work?
Such insurance policies will:
- help you cover some of your high medical costs
- allow you to keep up with your mortgage payments
- maintain your standard of living while you are unable to work
- ensure that you maintain a steady income so you don’t fall into debt
Call Today
To find out more about our mortgage life insurance policies, as well as how to add disability and critical illness coverage to your policy, contact one of our licensed agents today at 1-844-974-2020 or fill in our online contact form.
