MORTGAGE LIFE INSURANCE
Mortgage life insurance policy is a type of life insurance that allows one to pay off their outstanding mortgage balance in the event of their death. By having this financial backing, they can ensure that their dependents won’t be indebted with the burden of a mortgage, securing their family’s future.
The layout for a mortgage insurance plan can vary, depending on different parties. However, the policies typically provide coverage for 15 to 30 years to the relevant recipients. The death benefits your dependents may get are usually structured in of the following ways:
- Level: As per this, the death benefits remain unchanged over the years for as long as the policy is applicable. For individuals who have an interest-only mortgage, this is the most preferred option as it keeps the payment amount constant in the entire duration.
- Decreasing: According to this method, the beneficiaries receive a set amount of death benefits in the first few years of insurance coverage. However, over the course of the policy, these then decrease at a certain rate in an attempt to encourage quicker mortgage payments.
- Mortgage Principal: In some insurance policies, the outstanding mortgage principle is directly linked to the death benefits provided. In some ways, this acts similar to the decreasing policy. However, this also depends on how quickly you’re able to pay off the mortgage sum. In case the payment is done slower or faster than the expected rate, the insurance policy may be altered.
Pay Off Your Mortgage
In a mortgage life insurance policy, it’s the mortgage lender who’s the beneficiary. The coverage is provided to your lender, enabling them to be paid back the balance they’re owed. Your family needn’t be involved with any of the proceeds, and can live securely!
IFG Insurance Brokerage helps individuals find the perfect mortgage insurance package that best suits their financial needs. Get in touch with us now! way.
We've Got You Covered
The IFG Insurance Brokerage Three Step Process
In our first meeting, we’ll get to know each other. We will talk about what your financial objectives are, and what it is that you’d like to accomplish with your financial plan. We will also share a little bit about our financial planning strategies and what we can do to help you achieve your goals.
Building Your Plan
In our next meeting, we will begin building your plan. We will cover Social Security, Pensions, 401k’s, and Medicare, as well as your lifestyle and other factors that can affect your retirement income. We will also discuss how to protect your financial future from unexpected expenses and life events.
As life changes, so should your plans. We will meet with you on a regular basis to re-evaluate your financial plan and make adjustments as necessary. We will work hard to ensure that you are always on target to achieve all your financial goals and objectives.