Is there a life insurance policy for homeowner's to protect their home?
Yes, in fact, homeowners can choose from several types of life insurance plans to protect their home and family.
If you own a home you may have a mortgage loan on your home. Many people with a mortgage choose to buy life insurance to pay off the mortgage in case they should pass away before the mortgage us fully paid off.
That way, your loved ones can remain in the home they shared with you.
In order to protect your home mortgage loan you may want to consider mortgage protection insurance, decreasing term insurance or mortgage term life insurance.
Mortgage protection insurance is usually required by your mortgage lender if you put down (down payment) less than 10% to buy your home. In this policy you name the lender as beneficiary and the lender receives the death benefit upon your death.
Another option may be decreasing term insurance where you pay the same amount of premium each year but the amount of life insurance protection declines each year in line with your declining mortgage loan outstanding.
There is also mortgage term life insurance which allows you to choose your beneficiary (for example, your spouse or family member) to receive the death benefit upon your passing. That way, they would have the funds to pay off the mortgage and keep your home in the family in case you pass away. The amount of life insurance remains the same each year, and your premiums are level for the life of your policy, usually from 10 to 30 years.
Yes, in fact, homeowners can choose from several types of life insurance plans to protect their home and family.
If you own a home you may have a mortgage loan on your home. Many people with a mortgage choose to buy life insurance to pay off the mortgage in case they should pass away before the mortgage us fully paid off.
That way, your loved ones can remain in the home they shared with you.
In order to protect your home mortgage loan you may want to consider mortgage protection insurance, decreasing term insurance or mortgage term life insurance.
Mortgage protection insurance is usually required by your mortgage lender if you put down (down payment) less than 10% to buy your home. In this policy you name the lender as beneficiary and the lender receives the death benefit upon your death.
Another option may be decreasing term insurance where you pay the same amount of premium each year but the amount of life insurance protection declines each year in line with your declining mortgage loan outstanding.
There is also mortgage term life insurance which allows you to choose your beneficiary (for example, your spouse or family member) to receive the death benefit upon your passing. That way, they would have the funds to pay off the mortgage and keep your home in the family in case you pass away. The amount of life insurance remains the same each year, and your premiums are level for the life of your policy, usually from 10 to 30 years.
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