All Categories Investment PropertyBuying Your HomeSelling Your HomeLearn - Real EstateTestimonialsAliso ViejoCapistrano BeachCoto de CazaDana PointIrvineLaguna BeachLaguna HillsLaguna NiguelLake ForestMission ViejoNewport BeachRancho Santa MargaritaSan ClementeSan Juan CapistranoTustinGet FinancedRobyn Seymour's VideosForeclosuresGeneral Real Estate

Advanced Search

A typical form of life insurance that will reimburse your mortgage if you pass away or even if you become disabled and this type of life insurance is called as Mortgage life insurance. The question is, should you buy a specific mortgage protection policy or go with something else? Mortgage protection life insurance used to be mainly a decreasing benefit type of policy. That meant that as the mortgage was paid down, the benefit from the policy decreased as well. Nowadays, most mortgage life insurance is sold as a level term policy meaning that the benefit amount stays the same through the length of the term, no matter what your mortgage balance is.

Sometimes you can get a Return of Premium rider for the policy, which means you get the premiums you've paid back if you haven't used the coverage at the end of the term. Many financial advisers, however, feel that you shouldn't purchase a specific mortgage term policy but rather a regular term or permanent life insurance policy based on your entire financial situation. One reason is because it gives your survivors more flexibility; for example it may be beneficial to your spouse to keep the mortgage payment and have the life insurance proceeds cover other expenses. Think about your family's needs first.

Costs for mortgage protection policies versus other types of life insurance policies can vary quite a bit. Also, costs for the same type of life insurance such as term can vary between companies. Because of this, experts advise that you shop around and get at least three different comparison quotes whether you want to buy mortgage protection insurance or any other type of life insurance. When you get comparison quotes, make sure to ask for the same coverages and terms to get the most accurate comparison. Once you enter the adequate information on the site it provides various quotes based on the comparison of life insurance quotes.