Preparing for end-of-life isn’t exactly something that most people want to think about. But no matter how young and healthy you are, things can happen. For many people, the purchase of a home or the arrival of a new baby spurs them to think about life insurance options. At Source Mortgage, we can help connect you with a mortgage life insurance plan that suits your needs.
Insurance That Covers Your Bases
Mortgage life insurance protects the borrower by paying out a capital sum to repay the outstanding mortgage in the event of a debilitating illness or death. This is not to be confused with private mortgage insurance which protects the lender in case the borrower defaults.
How it Works
The value of the insurance coverage is equal to the capital outstanding on the repayment mortgage. To be valid, the policy’s termination date must be the day that the final payment is scheduled. Once these measures are in place, the annual rate will be calculated to reflect how the insurance coverage should decrease over time, mirroring the value of the capital outstanding on the mortgage.
Protecting Your Loved Ones
It is important to note that life insurance benefits are paid tax-free, regardless of the type of life insurance policy. When considering mortgage life insurance, take the time to reflect on how the death of one spouse may affect the financial capability of the household. For the most part, our economy demands double income wages in order to pay off large debts such as a mortgage. Life insurance ensures that this is something your family never needs to worry about. Unlike traditional life insurance, some policies will even pay you out if you are diagnosed with a terminal illness or become gravely ill.
It’s never too early to consider life insurance. Mortgage life insurance gives you peace of mind, knowing that your family will be taken care of no matter what happens to you. Ask our experts which policies would work best for you by calling 403-341-7800.