Mortgage Life insurance is a kind life insurance that pays the balance of a mortgage at the death of the insured person or the mortgagor. The owners of homes, townhouses, and condominiums get the maximum profit from mortgage life insurance. There are two types of mortgage life insurance:
• Mortgage protection insurance
• Decreasing term life insurance and
• Level term life insurance
• Mortgage protection insurance
• Decreasing term life insurance and
• Level term life insurance
The insurer of mortgage protection insurance provides life insurance protection for up to 30 years. So, the person having mortgage for 30 years or less can buy mortgage protection insurance which can cover the completely to insure the person throughout the term. Mortgage protection insurance is not Private mortgage insurance and it protects the policy holder’s family and home. Private mortgage insurance is bought for the protection of the policy holder.
The usual form of mortgage life insurance is the decreasing term insurance. The premium of decreasing mortgage insurance remains same for each year of the policy while the amount of insurance decreases each year.
Level term life insurance is available for 10, 15, 20, 30 years of protection and the person who has mortgage loan for any of the above periods, can be benefited by having this kind of life insurance. The level term life insurance policy provides protection throughout the term of the signed mortgage. The premium of level term life insurance remains same for each year and the amount of life insurance protection remains constant throughout the term of the policy.
All the three mortgage life insurances are beneficial. But for better benefit, the customers should compare the facilities like coverage, prices, and plans offered by the protection of mortgage insurance, level term life insurance and decreasing life insurance. The main advantage of mortgage life insurance is that it covers protection for the family as well as the same life style continuation of the family members like the policy holder at home.
