Mortgage term life insurance, which is usually the least expensive form of mortgage insurance, pays a death benefit to your beneficiary or beneficiaries if you pass away while the coverage is in force. If you outlive the term and don't renew your mortgage insurance policy, or if you stop paying your mortgage insurance premiums, your mortgage insurance coverage is terminated and no death claim will be paid out. Mortgage term life insurance can be converted to whole or universal mortgage life insurance without any evidence of insurability.
There are several different forms of mortgage term life insurance available. Yearly renewable mortgage term life insurance is one such product. While the mortgage insurance premiums for such a mortgage insurance policy are initially low, they become increasingly larger as the insured increases in age. This is the most common form of mortgage term life insurance offered by a group mortgage insurance policy.
Decreasing mortgage term life insurance works in the opposite manner. While the death benefit from the mortgage term life insurance decreases with the increased age and the depleting mortgage of the insured, the mortgage insurance premiums decrease as the insured decreases the coverage amount. This type of mortgage term life insurance is most often used to help protect a mortgage because the decrease of the death benefit roughly parallels the reduction of the outstanding mortgage.
With guaranteed level mortgage term life insurance, your mortgage insurance premiums and your death benefit amount are guaranteed to remain level for a specified period - usually 5, 10, 15, 20, 25, or 30 years. At the end of the guaranteed level period, your mortgage insurance premiums will either increase for a one-year period or for another specified duration and are subject to a guaranteed maximum. At that point, you may have to re-qualify for mortgage insurance coverage by providing proof of insurability. This is an extremely important factor to consider in deciding which mortgage insurance policy is best for you & your family.
TermAdvantage is committed to finding you mortgage term life insurance that fits your family's needs and budget. Since mortgage term life insurance varies in price substantially, TermAdvantage shops over 2,000 mortgage insurance companies to find mortgage term life insurance custom-fitted to your exact specifications. While the decision to purchase mortgage term life insurance is an important one, TermAdvantage is committed to finding you the best available mortgage term life insurance at the lowest rate from the nation's highest-rated (A or better by AMBest.com) mortgage insurance companies.