The Basic Need for Mortgage Term Life Insurance

The unexpected death of you or your spouse can wreak havoc in your family’s budget and can change their financial outlook forever. Instead of having two incomes to rely on, your family will be forced to depend only on the income of the surviving spouse. Often, an untimely death results in complete upheaval for your family. At times, this can mean the home you chose for your family, customized and invested your heart, soul and money into, must be sold and your family must relocate. This can happen in a short period of time resulting in little research going into the neighborhood to which your family moves. Mortgage Term Life Insurance can protect your family from this undesirable situation. With Mortgage Term Life Insurance, your family can rest easy because they know that you have invested in an insurance policy that is solely dedicated to paying the mortgage off and preserving their way of life in the event of your death.

Return of Premium Rider

It is important to remember that Mortgage Term Life Insurance purchased through your loan company is not going to provide a death benefit that can be applied to any other debt or expenses after the death of the insured. This makes additional life insurance policies necessary. By purchasing Mortgage Term Life Insurance through TermAdvantage, you can design a policy with a death benefit to cover all your family's needs. There are even ways to get your premium dollars back from your Mortgage Term Life Insurance policy if your death does not occur and prompt a benefit payout. A return of premium rider is an added benefit to your policy that guarantees the insurance issuer will pay back to you all premiums you’ve paid on the policy. There are certain conditions that must be met in order for the rider to be exercised, and there is an additional premium charge that must be paid each month in order to fund the rider.

What Mortgage Term Insurance Provides

It is important to remember that Mortgage Term Life Insurance is a policy that insures your life and does not offer any kind of assistance should you or anyone in your family experience a difficult financial time. Mortgage Term Life Insurance does not offer any type of supplemental mortgage paying clause if you become ill or unemployed and does not protect your house from foreclosure. Unlike whole or permanent life insurance policies, Mortgage Term Life Insurance does not accrue any cash value for you to borrow from or for you to take should you decide to surrender your policy. For an additional premium it may be possible to buy an accelerated benefit rider on your Mortgage Term Life Insurance policy. This rider (if available) allows you to receive a portion of your death benefit once the insurance company has been given proof that you are terminally ill.

Reassessing Needs with the Guaranteed Insurability Rider

If you add the Guaranteed Insurability Rider onto your Mortgage Term Life Insurance policy, then you will have some major decisions to make at different intervals during the term of the policy. The guaranteed insurability rider allows you to increase your death benefit at different intervals without going through underwriting. It is very important during these pre-approved intervals that you review your insurance needs and decide how much additional coverage you should add to your Mortgage Term Life Insurance.

Take into consideration any additional debt you’ve taken out since you initially bought the policy. Any equity loans, credit card debt, new vehicle loans, or other debt should compel you to add additional insurance benefits to your Mortgage Term Life Insurance policy.

Another change to consider would be college tuition for any new children you’ve added to the family. If you are using the policy to pay your children’s tuition, then any new children that have been born or adopted since you bought the policy should be included in the death benefit.

Making Income Changes to Your Policy

If you are using your Mortgage Term Life Insurance policy to replace your income should you pass away, then you will want to increase your coverage in order to compensate for any raises you’ve gotten since you took out the policy. With a guaranteed insurability rider, you have the comfort of knowing that you can increase your death benefit at certain intervals without worrying about going back through underwriting for approval. This means that any changes in your health or weight will not be taken into consideration. This helps to keep your premiums at the same rate as they were when your policy was initially issued and can prevent you from being denied the additional death benefit.

This rider is especially helpful in long-term Mortgage Term Life Insurance policies. Over the next thirty years, you can anticipate many raises, promotions, and career changes that will change your death benefit needs for income replacement.