Owner, Better Benefits,
Mortgage Life to protect your love ones from the burden of a mortgage can be accomplished in a couple of ways. You can purchase a policy from your bank or mortgage company that will pay off your obligation to them in the event of your death. The amount of the policy will be paid to the bank and your family and loved ones will not have that mortgage as a burden.
The other option is to purchase a Term Life Policy through an independent agent that compares the best companies for this type of protection. The main benefits of a Term Life Policy is that the death benefit will not decrease during the life or term of the policy. The other benefit is that the death benefit is paid to your beneficiary and they decide where the money is distributed. Your family and/or loved on can pay off the house and use additional funds for final expenses or
You should compare both options. The term life policy is more flexible but both should be considered.
Mortgage disability insurance can be purchased as separate policy through your bank or some insurance companies. Disability income is paid at a maximum per month depending on your state. They will compare what you receive from other sources, such as your employer or personal policy, and determine the maximum amount of payment that your can receive.
You can add disability income additions or riders to your term life policy for the amount of your monthly mortgage payment and get the convenience of one payment.
The cost of these policies and riders are dependent on the amount of monthly payment needed, the length of time the payments continue, your occupation, and the amount of time between when the disability starts and when the payments start.
Check with your agent to determine how the program works for you.
Answered on September 14, 2013