Is mortgage or term life insurance the best choice for you?(c)

[IPLAN4U]

Is mortgage or term life insurance the best choice for you?

Whether you're buying a home for the first time, or refinancing an existing
mortgage, someone has probably suggested you purchase mortgage insurance.
But don't rush into buying a policy until you've looked at all the
possibilities. You could end up saving money and getting added insurance
coverage at the same time by purchasing a term life insurance policy
instead.


What is mortgage insurance?
Mortgage insurance, also known as creditor insurance, is offered by most
banks and lending institutions. It is an insurance policy that pays the
balance of your mortgage to the lending institution if a person listed on
the mortgage passes away.


How does term life cover your mortgage?
When you purchase a term life policy, you take into account all the money
your family will need in case you are not around to help out. This includes
your mortgage payments.


Mortgage insurance vs. term life insurance
Depending on your age and health, the premiums on mortgage insurance can be
much higher than what you would pay for a term life policy.


What do all these numbers mean?
If you are female and a non-smoker, you are almost assured to get a
better insurance rate if you chose a term life policy over a mortgage
policy.


Extra coverage with term life
A Term life policy gives you added coverage and flexibility over a
mortgage insurance policy;


a.. The beneficiary of a mortgage insurance policy is the bank,
whereas your family receives any payout from your term life policy directly.
This gives them the flexibility of using the money to pay off debts, or, if
they can still carry the mortgage payments, they can use it for investing
and securing a future income.
b.. Mortgage insurance policies only cover you for the amount of
your mortgage you owe to the bank. As you pay down your mortgage, your
coverage amount decreases with it. This is called a reducing balance. With a
term life policy, you have a constant level of coverage for the whole term
and are getting better value for your monthly payments.
Shop, compare and save
When purchasing your new home, take the time to shop around for
insurance. Compare the cost of a term life policy to a mortgage insurance
policy. Chances are, if you're relatively young and in good health, you'll
find a term life policy will have lower yearly premiums and offer more
coverage and flexibility than a mortgage insurance policy.

For more information ,plz qqh me.

 

[dkwan]

A term insurance is an insurance for life.
A mortgage insurance is an insurance to product your mortgage.

These are 2 different products, couple of points:
1) if I have term insurance to protect the mortgage, what if I sell the house?
2) if I have term insurance to protect the mortgage, what if I become fully/partial disable?
3) preimum of mortgage insurance is reducing depends on principle left on mortgage
... etc

Some points above are true, but not completely true. Please consider more carefully.

 

[IPLAN4U]

最初由 dkwan 发布
A term insurance is an insurance for life.
A mortgage insurance is an insurance to product your mortgage.

These are 2 different products, couple of points:
1) if I have term insurance to protect the mortgage, what if I sell the house?
2) if I have term insurance to protect the mortgage, what if I become fully/partial disable?
3) preimum of mortgage insurance is reducing depends on principle left on mortgage
... etc

Some points above are true, but not completely true. Please consider more carefully.

Thanks for reply.

1)If you sell the house,you are still protected by the life insurance.
2)There are riders available in the insurance policy to protect disability.
3)Usually, life insurance premium is relatively cheaper at the beginning .

 

[dkwan]

does term insurance has rider for disability?

can term insurance reduce face amount?

 

[IPLAN4U]

there are riders for disability in term insurance.

if the price of death goes down, term insurance would reduce its face amount.