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Is Life Insurance Mandatory For Home Loans?

6/20/2014

No, it is not required that you have Life Insurance when applying for or getting a home loan.

There is a type of insurance for mortgages that is required for government backed mortgages, or if you cannot make over a 20% down payment on a private loan for your home. This is called PMI, or Private Mortgage Insurance.

Private mortgage insurance pays the lender of your mortgage loan if you are unable to make your mortgage payments. This is the difference from buying voluntary Life Insurance that would pay off your mortgage if you died. Your own life insurance policy would pay the death benefit to the beneficiary of your choice; whereas, PMI pays the lender.

Learn about the benefits of mortgage life insurance and how it may be more affordable than mortgage insurance plans that protect the lender.

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How Does Life Insurance On A Mortgage Work?

4/11/2014

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Mortgage life insurance works similar to a traditional life insurance policy.

With mortgage life insurance you pay a premium to an insurance company and a death benefit is paid by the insurance company to the beneficiary of the mortgage life insurance in the event the insured dies during the life of the policy.

There is one big difference between traditional life insurance policies and mortgage life insurance - the structure of the life insurance policy death benefit.

Traditional life insurance policies feature a level death benefit for the life of the policy along with level premiums for a specified term - 10, 15, 20 or 30 years (or guaranteed forever).

Mortgage life insurance features level premiums each year, but have a decreasing death benefit - much like how a mortgage works (hence the name). So, the amount of the coverage would decline each year, in line with your decreasing outstanding mortgage loan.

However, many people choose to buy level term life insurance for a term of 20 or 30 years, to protect their home mortgage loan.

Learn more about life insurance on a mortgage.

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Is Life Insurance Necessary For A Mortgage?

12/9/2013

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Life insurance can help you to protect your family and your home in case you die.

Life insurance on a mortgage can leave your spouse or loved ones with the money needed to pay off your outstanding mortgage loan in case you die.

On the other hand, your lender may require you to buy private mortgage insurance depending on the amount of money you put down as a down payment on your home.

Usually, if you are putting down 5% or less as a down payment when purchasing your home, the lender may require you to purchase private mortgage insurance which protects the lender in case you die before the loan is fully paid off.

The main benefits of buying regular life insurance to protect your mortgage include the low rates for coverage, flexibility of choosing the term you need (10, 15, 20 or 30 years), and being able to choose who receives the death benefit. Your family members can be the beneficiary and they can use the money to not only pay for the mortgage, but for any other purpose as well.

In addition, regular life insurance does not decline in coverage each year.

Here's how to learn more about buying mortgage life insurance to protect your mortgage.

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Why do I need life insurance with a mortgage?

12/6/2013

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You don't need to have life insurance with a mortgage.

However, if you do borrow more than a certain amount, you will need to purchase Private Mortgage Insurance that will repay the mortgage lender what is owed them, if you pass away.

Life insurance, on the other hand, can help to pay off your entire outstanding mortgage loan, and leave the excess to your beneficiary to pay other bills, or use for any purpose.

If your mortgage interest rate is so low that your beneficiary wants to keep paying the mortgage and invest the life insurance proceeds, they can do that, with a regular life insurance policy.

So, while life insurance is not required with a home mortgage, it is an excellent idea to help provide financial security and protection for your family to remain in the home they shared with you, in case you die.

Learn more about mortgage life insurance and how it works.

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How Much Is Mortgage Life Insurance?

10/27/2013

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The cost of your mortgage life insurance policy will depend on several factors, including your age, heath, occupation, hobbies, family health history, driving record, etc. Each of these may affect your longevity - how long you are expected to live. In addition, the amount of coverage and how many years your policy will last will impact your cost.

There are two types of life insurance for a mortgage loan: Mortgage Payment Protection and Mortgage Life Insurance.

1. Mortgage Payment Protection insured the lender in case you become disabled or die. The death benefit is paid out to the lender so your loan is paid off.

2. Mortgage Life Insurance is a level term life insurance policy that provides life insurance for up to 30 years, depending on your needs. The death benefit is paid out to the beneficiary of your choice, which may include your spouse o children. The money can be used for any purpose, including paying off your home mortgage loan. In addition, the amount of coverage does not decline over time, so any additional money left over after paying off the mortgage may be used for any purpose, as well.

To find out how much life insurance on your mortgage may cost you can instantly compare mortgage life insurance rates online now from several leading life insurance carriers with no obligation, and no need to meet with an agent.

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How much is life insurance for a mortgage?

7/1/2013

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What does life insurance cost to protect your mortgage?

The amount you pay for your mortgage life insurance policy will depend on several factors, including the duration of your mortgage - is it a 15, 20 or 30 year loan?

Also, the amount of the mortgage - the higher the mortgage loan, the larger the amount of life insurance you need, and the higher your rate for your mortgage life insurance policy.

In addition, your own risk factors will impact your cost of mortgage life insurance, including your age, gender, health, occupation, hobbies, family health history, driving record, height-to-weight ratio, lifestyle, if you smoke or not, etc.

All of these risk factors may impact how long you are expected to live. The longer your life expectancy, the lower your rate for life insurance for your mortgage.

Make sure you compare rates from several insurers before choosing your plan because prices do vary among insurers.

Also, consider paying your premiums annually (one per year) as annual premium payments may end up costing you a little less than paying monthly.

You will have the option of choosing a term (duration) for your mortgage life insurance policy of 10, 15, 20, 25 or 30 years. Make sure you get at least the same duration as your existing mortgage loan - which may be 20 or 30 years.

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What companies sell guaranteed issue mortgage insurance?

5/2/2013

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I don't know that any insurance companies sell guaranteed issue mortgage insurance coverage.

However, there are insurance carriers that do offer mortgage term life insurance plans without any health examination required.

In order to qualify, you just answer some health questions. In fact, you can get a free mortgage term life insurance quote online, apply for your policy in minutes, and find out today if you qualify for coverage.

If you are approved, you may be able to start your mortgage term life policy the same day.

With no exam mortgage life insurance you may qualify to buy up to $350,000 of coverage without taking a physical.

Coverage may be available for a term (duration) of 10, 15, 20, 25 or 30 years to provide protection for your mortgage, and your family.

An, if you pass away during the policy term your beneficiary (family) receives the proceeds from your life insurance.

Learn more about no medical mortgage life insurance and how it can provide the protection your family needs to remain in your home, even if you are no longer there to share it with them.

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What is the best life insurance policy to have if you have a mortgage?

4/24/2013

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If you have a mortgage you may want to consider and compare mortgage protection insurance and mortgage term life insurance.

If you are putting a small amount down to buy your home, the lender may require you to buy mortgage protection insurance. This would pay the lender your monthly mortgage payment if you become disabled, or pay off the loan if you die.

However, the payment is made to the lender, your family gets nothing in payment from the insurance.

On the other hand, if you are not required to buy mortgage protection insurance, you may still want to buy mortgage term life insurance.

It's basically a level term life insurance policy lasting for the duration of your home mortgage loan, which may be 15, 20 or 30 years. The amount of life insurance remains level throughout the policy and the premiums are the same each year.

If you pass away, the money goes to your beneficiary that you chose, not to the lender. So, your family would have money to make the mortgage payments, or pay off the mortgage. The money can be used for any reason, so your family could pay for living expenses, cost of education, or anything else they choose to use it for, not just the mortgage.

Learn more about mortgage term life insurance and compare plans today.

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Do I Need Mortgage Protection Insurance or Mortgage Life Insurance?

3/26/2013

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I want to buy insurance to provide for my mortgage in case I die but I'm not sure which type I need.

Which is better, mortgage protection or mortgage life insurance?

That depends on what you want your policy to accomplish and what you can afford to pay.

Usually, if you are putting down 5% to buy your home, your insurer may require you to buy mortgage payment protection insurance. This would pay your premiums in case you get injured (become disabled), or it pays out a death benefit if you die. The mortgage company is named as the beneficiary and gets the insurance if you die, not your family.

However, if you are putting don't more than 5% when buying your home, and the mortgage company is not requiring you to buy mortgage payment protection insurance, you may want to consider mortgage life insurance.

Mortgage life insurance pays out a death benefit if you die. The money paid to your beneficiary can be used to pay off the mortgage, or for any purpose. You choose the beneficiary of the mortgage life insurance policy, so your family could get the money if you die.

Also, mortgage life insurance costs a lot less than mortgage protection plans because they do not pay your premiums if you become disabled.

In addition, you could have mortgage payment protection for your mortgage holder, and a term life insurance plan to protect your family.

Mortgage term life insurance can provide affordable rates on protection for up to 30 years of coverage. You could name your spouse, or family members as the beneficiary, and they could receive the money upon your death. They could then use the life insurance proceeds to pay the mortgage, provide for living expenses, or any other needs they have.

Here's how you can learn more about mortgage life insurance and how it works.

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Mortgage Term Life Insurance?

1/14/2013

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What is mortgage term life insurance and how does it work?

Mortgage term insurance is a form of life insurance that provides protection for a period of up to 30 years.

It comes in the form of level term life insurance and pays out a death benefit to your spouse (beneficiary) in case you die before the mortgage loan is fully paid off.

By choosing a mortgage term life insurance plan to protect your family and home, you provide the protection your family needs to remain in their home in case you die.

Another benefit of mortgage term life insurance is that the money goes to your beneficiary, not the mortgage company, and your beneficiary can use it for any purpose, including paying off the mortgage.

With a level term life insurance policy you pay the same premiums each year, and your amount of life insurance protection remains level throughout the entire duration of your life insurance policy.

Here's how you can learn more about mortgage term life insurance and compare prices online among several leading life insurance companies.

There's even mortgage life insurance with no medical exam required. You may qualify to buy up to $350,000 of life insurance without having to take any physical examination. And, if approved, you may be able to start your life insurance the same day.

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