March, 23 2017

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Best Mortgage Life Insurance Companies

Best Mortgage Life Insurance Companies

The best mortgage life insurance companies provide peace of mind that if you unexpectedly pass away your loved ones will be able to pay off the mortgage balance, erasing the burden of most people’s largest debt.

Best Mortgage Life Insurance Companies 2015

While most people are familiar with how a mortgage works, choosing the best mortgage life insurance policy to protect your loved ones is not as well known.  This article will help you navigate the seas of mortgage protection and help you find one of the best mortgage insurance companies in America.

 

Mortgage Life Insurance

Mortgage life insurance is a product typically sold by the mortgage lender or other specialty insurance company that pays off your mortgage balance if you unexpectedly pass away.  This policy sounds good in theory but in reality there is a much better and cheaper alternative that is making traditional mortgage life insurance obsolete.

Term Life Insurance

With term life insurance, the face amount amount and the payments remain the same during the term length. Compare this to regular mortgage life insurance where the protection amount decreases over time but you still continue to pay same premiums.  Also, with level term life insurance, unlike traditional mortgage life insurance, you control and list the beneficiary.  This means if you pass away, your loved ones receive the money and can pay off the mortgage or other debts as needed.  However, with mortgage life insurance the bank is the beneficiary which protects the lender first.  So how much does term life insurance cost to cover a mortgage? Take a look at some sample prices below.

Term Life Insurance Quotes for a 15 Year Mortgage

$250,000 on a 15 year term:

Male: $15.50 Protective Life   Female: $13.91 Protective Life

$500,000 on a 15 year term:

Male: $24.33 Prudential   Female: $22.33 Protective Life

Term Life Insurance Quotes for a 30 Year Mortgage

$250,000 on a 30 year term:

Male: $34.20 Prudential   Female: $27.56 Banner Life

$500,000 on a 30 year term:

Male: $60.75 Prudential   Female: $44.63 Columbus Life

*Rates are for a 40 year old at the best health class, preferred plus

Simplified Issue Term Life Insurance

Another alternative to mortgage life insurance is simplified issue term life insurance.  This type of policy has the same benefits as term life insurance such as a level death benefit and level premiums, however this policy doesn’t require a health exam, only the medical underwriting questions.  The approval time is also faster than term life insurance, as fast as an instant decision compared to typical term life which has an approval time of average of 2-6 weeks. The downside is that for the added convenience these polices cost a little more than traditional term life insurance.  Take a look at some sample rates below.

Simplified Issue Term Life Insurance Quotes 15 Year Mortgage

$150,000 on a 15 year term:

Male: $19.69 Sagicor Life   Female: $17.10 Sagicor Life

$250,000 on a 15 year term:

Male: $24.10 Prudential   Female: $20.95 Sagicor Life

Simplified Issue Term Life Insurance Quotes for a 30 Year Mortgage

$150,000 on a 30 year term:

Male: $44.84 ANICO  Female: $34.86 ANICO

$250,000 on a 30 year term:

Male: $71.28 ANICO   Female: $54.65 ANICO

*Rates are for a 40 year old at the best health class, preferred plus

Qualifying & Cost

Mortgage life insurance is typically easier to qualify with just some minimal health questions and thus is more expensive than term life insurance.  Mortgage life insurance is also typically added to your mortgage payment.  For those in good health, a separate term life insurance policy will normally be less expensive and and overall better deal financially.

Best mortgage protection insurance companies

As you can see the best mortgage insurance companies offer superior coverage, policy amounts that don’t decrease, level premiums and affordable rates from highly rated insurers.  They provide peace of mind that if you were to unexpectedly die, your family’s largest debt will be erased and in even most cases provide additional money to live on or to take care of other bills.

Mortgage life insurance is becoming obsolete do to the face that it protects the bank or the lender more than homeowner and their family.  Term life mortgage protection is recommended over traditional mortgage life insurance by financial professionals such as Dave Ramsey, Suze Orman and Clark Howard.  Unless you are uninsurable and won’t qualify for traditional term or simplified issue life insurance we recommend that you compare the rates of mortgage life insurance and term life insurance and choose the best one for you.  By choosing one of the best mortgage life insurance companies you and your family will have peace of mind knowing that you have the best protection in place.

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Best Mortgage Life Insurance Companies
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