Are you worried about the future of your family and you want to provide strong protection for your home mortgage? This is a common concern because mortgages are big obligations that should be faced by every family. To make sure that you can bestow the property to your family without problem, you have to find a way to protect the mortgage.
As head of the family, you are expected to provide for your spouse and children. In case the head of the family dies early or unexpectedly, then there should be a way to protect the home. One of the best financial instruments available for homeowners is term life insurance. If you want to protect your asset, you have to secure the mortgage with term life insurance.
You may be wondering why term life and not universal life insurance? Well, there are many reasons why term life insurance is the perfect fit to protect your mortgage.
First of all, the time frame of term insurance is limited from 10 years up to 30 years. So the expiration of your coverage will usually coincide with the pay off date of your home mortgage. It gives you the opportunity to map out the coverage and to customize the expiration of your life insurance. For most consumers who are adept in financial planning, term life insurance is normally the most preferred option.
Second, term life insurance is very affordable and most people will not have any problem paying the premium. Typically, you will only pay $28 per month premium for a total coverage of $250,000 with 20 years expiration date. If you think about it, the total cost of protecting your home is only $1 per day. With such measly amount, there is no need for you to radically adjust the budget of the household.
It is easier to compare different term life insurance policies. This is the third reason why this type of insurance is more advantageous for homeowners. Because of its popularity, you can easily find different companies that offer term life insurance policy. You can easily search an insurer online that can offer personalized policy coverage. This is the best option to match the insurance to your specific needs.
Fourth, your loved ones will be the direct beneficiaries of the insurance. The proceeds will go directly to them instead of to the lender. In a typical mortgage life insurance, the lender will claim the proceeds of the insurance. With a term life insurance policy, your family has full control of the money. Your loved ones will have the freedom to decide how they will spend the money. They could pay off the mortgage, pay current debts, or supplement their income. Because of the greater control that can be enjoyed by your family, you will know that you have provided good protection for them.
For those who are still looking for ways to protect their mortgages, they should explore the big benefits of term life insurance. This insurance is cheaper than the most and every family can afford it. It provides sufficient protection for your family and can effectively protect your home mortgage.