Mortgage Protection Insurance Can Safeguard Your Family

It makes sense to think about purchasing mortgage protection insurance for your home if you are the main provider for your family. Should you meet with an untimely death before your mortgage has been paid off, your spouse will have to continue to make the mortgage payments if he or she wants to remain in the family home.

Mortgage insurance, which is essentially a term-life insurance policy, can be purchased in the amount of your remaining mortgage balance and for the length of time remaining on that mortgage. If, for example, you have 20 years remaining on your home mortgage worth $100,000, you can buy a 20 year term policy that will protect you while money is still owed to your lender.

If you are young and in good health, a term-life policy might only cost you $25 per month for $100,000 of coverage. Paying a little bit extra each month is affordable for most homeowners. While no one expects to die when they are young and healthy, accidents do happen. Having that extra layer of protection can help you sleep better at night. It is also the responsible thing to do if you care about your spouse and children.

Just like you buy home insurance to protect your dwelling against perils like fire and wind that can damage your home, you should consider buying insurance that will pay off your mortgage should you pass away before the mortgage is satisfied.

Finally, if you take out a 20 year term-life policy, and you pass away in year 19, the policy pays off in full, not just the amount remaining on the mortgage. So, a term-life policy will protect your house and can also serve as spendable cash for other needs for your surviving spouse.

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