Knocking of the offers of mortgage life insurance in your mail is common when you are in the process of buying a house. No doubt, mortgage life insurance (also known as mortgage protection insurance) pays off your home loan when you die with some balance. But, there is also a term life insurance, which often confuses the homeowners. People get into the dilemma that whether they should go for term life insurance or mortgage life insurance. Well, here we have discussed differences between them that will pull you out from this confusion.
Let’s start with the term life insurance; it will let you choose you the benefit amount. This means you can buy enough coverage to meet all the needs of your family. On the other hand, mortgage life insurance is specifically made to pay off your mortgage. Another difference is, term life insurance offers your family flexibility. It will pay a death benefit to the person (such as wife or spouse) you will choose when you are not here within the policy’s term. While, under some mortgage life policies, the benefit will not be paid to your family. In fact, it will be paid directly to the lender.
With term life insurance, you can choose a term based on your term financial obligation as many providers offer the policies that last between five to thirty years. But, when you pick mortgage life insurance, the policy will concur with the duration of your home loan. Please note that some of the policies offered by the latter one end if you refinance. There is no doubt that term life insurance enhances your bucks as it is cheaper when compared with mortgage life insurance. If still, you have some confusions then you can take this homeownership quiz to find out the best option for homeowners.
To buy a home is a dream of many and when you are buying it, you must assess your need for life insurance. If you want to get more details about life insurance, then you should take different life insurance quizzes at HealthIQ.com. Before you jump at some unsolicited offers, make sure you take a holistic view of the financial situation of your family.