Mortgage protection is a paramount concern today due to the continuing uncertainties in the economy and real estate sector. You can not deny the fact that your home is your biggest asset and the mortgage your biggest obligation. In case something happens to you, your family should have the ability to pay the mortgage to protect your single biggest asset.
As head of the family, you are expected to provide for your spouse and children. In case the head of the family dies early or unexpectedly, then there should be a way to protect the home. One of the best financial instruments available for homeowners is term life insurance. If you want to protect your asset, you have to secure the mortgage with term life insurance.
You may be wondering why term and not universal insurance? Well, there are many reasons why term insurance is the perfect fit to protect your mortgage.
First of all, the time frame of term insurance is limited from 10 years up to 30 years. So the expiration of your coverage will usually coincide with the pay off date of your home mortgage. It gives you the opportunity to map out the coverage and to customize the expiration of your life insurance. For most consumers who are adept in financial planning, term insurance is normally the most preferred option.
Second, term life is very affordable and most people will not have any problem paying the premium. Typically, you will only pay $28 per month premium for a total coverage of $250,000 with 20 years expiration date. If you think about it, the total cost of protecting your home is only $1 per day. With such measly amount, there is no need for you to radically adjust the budget of the household.
It is easier to compare different policies. This is the third reason why this type of insurance is more advantageous for homeowners. Because of its popularity, you can easily find different companies that offer this policy. You can easily search an insurer online that can offer personalized policy coverage. This is the best option to match the insurance to your specific needs.
Fourth, your loved ones will be the direct beneficiaries of the insurance. The proceeds will go directly to them instead of to the lender. In a typical mortgage payoff insurance plan, the lender will claim the proceeds of the insurance. With a your own insurance policy, your family has full control of the money. Your loved ones will have the freedom to decide how they will spend the money. They could pay off the mortgage (but are not forced too), pay current debts, or supplement their income. Because of the greater control that can be enjoyed by your family, you will know that you have provided good protection for them.
One of the best financial instruments that can protect your mortgage is term life insurance. Families on a tight budget can easily afford it. It also provides unique benefits that will protect your mortgage and your family.
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