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You can protect your mortgage through life insuranceYou’ve done it—you’ve purchased a home! It’s probably the biggest investment you’ll make. But it doesn’t come cheap—after securing a mortgage, you’ll take on tens of thousands of dollars in debt. With this high cost in mind, very few homeowners would not consider insuring their new home.But homeowners insurance may not be enough. More homes are lost due to the death of the homeowner than to fire—simply because the money wasn’t available to make the payments. That’s what mortgage protection is for—to help complete home payments when the income that used to pay them is no longer there. There are two types of mortgage protection: term and permanent insurance. Term insurance is often cheaper, since a term policy is "pure protection," providing no cash values or benefits beyond a death benefit on the life of the insured. This choice is ideal for families with two wage-earners who wish to protect against the premature death of either person. Permanent insurance has the same benefits as a term policy, but also accumulates a cash value that the homeowner can use to pay off the mortgage early. This fund’s projected value can be designed to accumulate to an amount equal to the remaining mortgage balance in any given year. Many people choose to pay off their mortgage with permanent insurance in the 20th year—and save thousands of dollars in interest! Putting your mind at ease with the security of mortgage protection won’t take a large chunk of your savings, either. A simple mortgage protection policy can protect you and your home for just a small additional amount each month. Ask your agent for more information about mortgage protection policies.
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