Monthly mortgage
payments can take up a large portion of your monthly
income. In the event of you or your spouse passing away,
you could be left unable to make your mortgage payments.
Term mortgage protection insurance can help to protect
your family from the financial hardship that sometimes
arises with the death of a loved one.
When you obtain a mortgage at your local bank, along
with the mortgage they will usually try to sell you
what they call "mortgage insurance." This
is not "mortgage insurance" but life insurance
which protects them by having you buy their policy.
Basically you are paying for an expensive policy
which the bank owns and in which they are the beneficiary.
The amount of the policy decreases while the premium
remains the same. If the premium decreased along with
the coverage, it wouldn’t be so bad, but it doesn’t.
In short, the policy decreases and you pay for it while
the bank owns, controls and benefits from it.
Term mortgage protection insurance
has a decreasing death benefit to match your mortgage
balance at the beginning of each year. Because the death
benefit decreases along with your mortgage balance,
the cost of term mortgage protection insurance is less
expensive when compared to non-decreasing term life
insurance.
If you want to be in control of your own financial
life, get your own life insurance
policy. You can control the level of coverage that
suits you, and ensure that your loved ones are taken
care of when you pass on.
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