Not necessarily. You may be required to take out mortgage protection insurance if the amount you put down on the home is 10% or less, but that depends on the requirements of the lender. This is not considered true life insurance, but is mortgage protection for the lender of the home loan. If the person taking out the loan dies, the death benefit is paid out to the lender to pay off the outstanding mortgage.
However, if you put down 20% or more as a down payment on the loan, you still may want to buy mortgage life insurance to leave the death benefit to your spouse/family so they can pay off the home mortgage and stay in the home if you were to die.
Many homeowners buy life insurance to protect their home and family in case they pass away before the mortgage is paid in full. That way, their family has the money to keep living in the home in case the homeowner dies.
A popular type of life insurance to help protect your family and mortgage is 30 year level term life insurance which provides a level amount of life insurance for up to 30 years, and the premium remains the same each year throughout the life of your policy. Here's how you can learn more about mortgage life insurance.
However, if you put down 20% or more as a down payment on the loan, you still may want to buy mortgage life insurance to leave the death benefit to your spouse/family so they can pay off the home mortgage and stay in the home if you were to die.
Many homeowners buy life insurance to protect their home and family in case they pass away before the mortgage is paid in full. That way, their family has the money to keep living in the home in case the homeowner dies.
A popular type of life insurance to help protect your family and mortgage is 30 year level term life insurance which provides a level amount of life insurance for up to 30 years, and the premium remains the same each year throughout the life of your policy. Here's how you can learn more about mortgage life insurance.
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