Question:

What is common about mortgage term life insurance?

Answer:

Mortgage term life insurance usually is not a decreasing type of mortgage life insurance. It is expected to pay off your home loan in case of death.

The traditional mortgage life insurance follows the repayment plan of the mortgage - the greater part of it is repaid, the less the insurance coverage. These days it is more sensible to get the cheapest level term insurance instead of decreasing coverage.

Mortgage Term Life Insurance with Return-of-Premium

The return of premium option has become a favorite choice for borrowers since term life insurance has more competitive rates and the coverage is not decreasing. Buying mortgage term life insurance with return of premium guarantees the policy owner will be reimbursed most or all of the payments you made.

How to choose mortgage term life insurance?

When selecting your mortgage term life insurance policy, it doesn't make sense to buy a traditional mortgage protection life insurance with decreasing coverage. It might be the cheapest (or may not), but it doesn't make much sense.

When choosing your mortgage protection life insurance, just make sure it takes care of your mortgage loan in case of your death and it has better rates than a comprehensive life insurance policy. In case rates are higher, consider the return of premium option.

Mortgage rates hit their lowest since 1955. Ask the home loan experts we recommend Quicken Loans how to take advantage of them.
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