Adding College Tuition Expenses to Your Death Benefit

When you purchase Mortgage Protection Life Insurance, you have the flexibility of applying for a higher death benefit than the balance of your mortgage. Often, this is a great option for parents concerned with the high tuition costs their children may face and the very real possibility that the surviving spouse will be financially incapable of paying the tuition him or her self.

Building in some extra funds into the death benefit to pay for some or all of your children’s anticipated tuition expenses can relieve stress from your spouse and can help your children avoid beginning their adulthood with the heavy burden of student loans. By adding an extra amount of money to the death benefit of your policy to help with tuition costs for your children, you not only protect their home and way of life in the event of your death, you also leave them with a head start for their future.

Paying Off Debt with the Death Benefit

Mortgage Protection Life Insurance is just like a traditional term life insurance policy. Although the name can infer that your death benefit is limited to or reserved for paying off only your mortgage, the beneficiaries of your policy’s death benefit can actually use the proceeds for anything they deem necessary. You name your own beneficiaries on your Mortgage Protection Life Insurance policy so the funds do not go directly to your mortgage company unless you want them to.

The death benefit on your Mortgage Protection Life Insurance can be used to pay off your primary mortgage, pay off the mortgage on your vacation, rental or other property, your cars and other debt. Depending on how much you get, it can even be used for college or private school tuition, income replacement for a few years and to create a trust for your grandchildren. Your options are limitless.

Mortgage Protection Life Insurance for Vacation Homes

Mortgage Protection Life Insurance can be used to provide a death benefit to pay the mortgage on any type of home. You do not need to buy a Mortgage Protection Life Insurance policy on your primary home only. If you and your family have enjoyed time together at your vacation home, it may be emotionally satisfying to provide your family with a means to pay off the mortgage on your vacation home should you pass away. Mortgage Protection Life Insurance makes that possible by providing you with an inexpensive premium with a death benefit built around paying off the debt.

You can include the debt of the mortgage on your vacation home in the death benefit of your main Mortgage Protection Life Insurance policy or you can buy a separate policy to cover the debt. You can also include a spouse rider on the policy and structure the death benefit to decrease over time.

Mortgage Protection Life Insurance on Rental Property

Rental properties can provide your family with a substantial extra income and, in some cases, can allow you to become self-employed. Often, the rent of the residents covers the costs of the mortgage and insurance for the property. Until the property is paid off, maintenance and other expenses may come out of the owner’s pocket. Rather than leave your family with a burden from your investment after you die, you can provide them with Mortgage Protection Life Insurance that will pay off the mortgage on all of your rental property.

Buy purchasing a Mortgage Protection Life Insurance policy with a death benefit that covers the mortgage on your rental property, you could be providing your family with the means to continue on in the lifestyle they are used to after you are no longer around to support them. With one simple Mortgage Protection Life Insurance policy, you could be paving the way to their future.

Mortgage Protection Life Insurance Instead of a Savings Account

Some think that buying Mortgage Protection Life Insurance is a gamble. If you don’t pass away during the term of the policy, and you don’t invest in the return of premium rider, then you are left with nothing to show for your premiums after the term.

In reality, Mortgage Protection Life Insurance is so inexpensive that the disparity between premiums and death benefit make it a very wise investment.

Your Mortgage Protection Life Insurance policy is in force once the policy is approved and you pay the initial premium payment and it is received and accepted by the insurance company. From that point on, your beneficiaries are guaranteed tens of thousands of dollars in benefits in the event of your death (unless there was a material misrepresentation on the application). Even after paying only one annual premium, your family is assured the death benefit.

If the premium dollars were instead put in a saving’s account, not only would they never reach the value of your death benefit, but they would also only equal the amount deposited before your death.

Buying a New Home at Age Sixty

Sometimes, during the later years of life, the desire to downsize may compel you to buy a new home and take out a new mortgage. When this happens, your family still needs a way to pay off that mortgage in the event of your death. Even if your children have children and mortgages of their own, saddling them with a house and mortgage after you’ve died can make their lives difficult. They may decide to put your house on the market, but until it sells, they must find a way to make the mortgage payments; in a down market, it could take an excessive period of time to sell the home.

Whether you're thirty-years-old with your first mortgage or sixty-years-old with your third, a Mortgage Protection Life Insurance policy offers your family protection against the strain of having to pay monthly mortgage payments after your death.