Cheap Mortgage Insurance Online
When you purchase your new house you are going to need some cheap mortgage life insurance in order to make certain that if anything should happen to you your loved ones will have the home.
You have just spent quite a bit on the down payment and of course on closing costs for your house.
In some states you cannot buy a house without an attorney so you also have attorneys fees to pay. You don’t need to be spending a lot of money on life insurance. Let us look at two cheap mortgage life insurance policies.
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Homeowners Love Cheap Mortgage Life Insurance
- The 20 Year Term Insurance Policy
Because many mortgages are for a 20 year period many people use the 20 year level term policy as their mortgage life insurance policy. The face amount is level for the duration as well as the premiums.
Upon your death, regardless of how you die, other than by suicide the life insurance company will pay to a beneficiary chosen by you the full face amount of the policy.
Your beneficiary will pay the bank or the mortgage company the balance owed to that organization. That is good and well if the mortgage is a new one but what happens if death occurs 5 years or 10 years down the line?
The balance owed will be less than the full face value of the policy. The beneficiary would, in this case, pay off the mortgage and keep the rest of the money.
20 year level term life insurance is truly cheap life insurance which can be used to pay off mortgage upon the homeowners death. Because of competition between life insurance companies the premiums constantly seem to be getting lower. There is, however, a cheaper way to go.
- The Decreasing Term Life Insurance Policy
It seems that this mortgage life insurance policy was created to be used expressly as a mortgage life insurance policy. It is such a perfect fit it may have been.
Let us say you have a 20 year mortgage and you buy a 20 year decreasing term life policy. The face amount of the policy decreases every year. The death benefit is usually close to the amount owed on your mortgage.
This depends on the amount of interest you are paying on your mortgage balance, however, the policy is set up that it will usually pay slightly more than the amount owed on your mortgage balance. But that is not all to it…
You see, if you died 5 years down the line or 10 years later the amount paid will be close to your mortgage balance. Since the amount of insurance will be less as the years pass the premiums are very low…cheap mortgage life insurance.
Although the premiums are level they are considerably lower than those of the 20 year term policy. This is truly cheap mortgage life insurance: in fact it does not get any cheaper than this.
So buy one of the two cheap mortgage life insurance policies and give yourself a breather.
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