Just Say No To Mortgage Life Insurance and Decreasing Life Insurance
These kinds of insurance policies will pay your mortgage in the event of death or disability. But the cost of these policies can be three to five times as much as comparable straight term-life insurance, according to
Consumer Reports. Decreasing term life insurance is more expensive and the death benefits of the policy decrease over time.
Plus, the value of this insurance actually goes down as you pay down your mortgage. If you’re worried about burdening your family with mortgage payments, you will be better off buying straight life insurance.
If you have a 30-year mortgage, buy a 30 year term policy in the same amount as your mortgage; it will be less expensive than mortgage insurance or a decreasing term policy. In turn you will have better
coverage for a better price. There are some scenarios where a decreasing term life policy may make sense, but in many cases the cost is not justified. You can accompkish the same goal thourgh a standard tem
policy and save money in the process.
To discuss which policy makes sense for you and your family’s individual needs feel free to contact an agent at Spectrum Insurance Group for a free no-obligation quote.