Term Life Insurance

Buying insurance of any kind is often confusing. In order to compare policies by price, you have to be sure that each policy carries the same benefits for the same amount, and figure in a dozen different factors. It’s enough to set your head spinning in most cases.

Term life insurance coverage can be relatively easy to comparison shop. It simply covers you in the event that you die before the end of the term for which you are covered.

How Term Life Insurance Works

Term life insurance will pay out a specified lump sum to the person that you name as beneficiary in the event that you die before the policy expires. The payout is subject to a few exclusions, most often suicide or other self-inflicted conditions.

Other than deciding if you want guaranteed or renewable premiums, there’s no need to worry about other bells and whistles, so comparing policies is a simple matter of comparing premiums among the various life insurance providers.

How Much Coverage Do You Need?

The biggest decision you’ll face is how much life coverage you need. The general rule of thumb is that, at a bare minimum, you should provide at least enough to pay off your outstanding debts and cover your funeral expenses. The face value of your policy should cover any remainder on your mortgage and other debts, and provide a cushion to help your family get back on their feet financially after your death. If you have young children, you should also cover your expected annual salary multiplied by the number of years until the youngest is no longer financially dependent.

What Factors Are Considered in Assigning a Premium?

There are a number of factors that may affect how much you pay for your policy aside from the amount of the death benefit you choose. These include your age, your gender, the state of your health and any pre-existing conditions, and whether or not you smoke. Smokers can expect to pay higher premiums than those who don’t use tobacco products.

Why Should You Buy Life Insurance?

If you are the major breadwinner or a major contributor to family income, you should be insured. No one likes to imagine what will happen if they die, but it makes sound financial sense. Potentially, your life insurance benefit can mean the difference between your family keeping the home in which you live and losing it to debt if you are no longer able to provide for them. In general, if you are carrying a mortgage, you should carry at least enough insurance to cover the remaining mortgage so that your heirs aren’t left with an ongoing financial impact.

Tips To Help You Save Money on Life Insurance:

• Only buy what you need
• Get the most appropriate coverage for a mortgage

Mortgage Protection Insurance Protects Your Family

In case something happen to you what would happen to your home? Will your family be able to pay the mortgage? Mortgage Protection Insurance (MPI) will provide the protection your family needs in case of death, disability or you lose your job. This coverage could be the best financial move you take for your family. That’s why if you have a mortgage it’s worth looking into mortgage protection insurance.

What is mortgage protection insurance?

Mortgage protection insurance simply is life insurance that pays your mortgage if a certain event, such as death, disability or job loss occurs. The cost of this policy depends on the amount of your mortgage and your age and health. For disability MPI, costs also vary depending on your occupation.

If you purchase mortgage protection insurance it pays off your mortgage when you die. This frees your family from worrying about how to make the mortgage payments knowing that their home is paid for.

Your policy pays in case you are disabled or lose your job, but only for a certain period, typically a year or two, and there may be an initial waiting period. Disability or job-loss policies pay the principal and interest on your mortgage. You may be able to get a rider to cover other mortgage-related expenses such as homeowners’ association fees.

Who Should Choose Mortgage Protection?

If you are wondering if you should choose mortgage protection, then you need to ask yourself a few questions

• Who are you leaving your debt to?
• Can your family afford paying the mortgage without your income?
• Do you have enough life insurance to cover the mortgage in the event of your death?
• How many years are left before the mortgage is paid off?
• Can you continue paying your mortgage if you are out of work for an extended period?
• Can you afford the monthly mortgage protection premiums?

If you are concerned about your family’s ability to continue making mortgage payments if you die or are injured, then you should seriously consider a mortgage protection option. When it comes time to buy mortgage protection insurance, learn about the features and price of each policy.

Contact us today to learn about Mortgage Protection Insurance.