Mortgage Insurance

If you’re already covered for every expense besides your Mortgage Payment in the case of a peril, then this is a good plan for you. The policy is essentially an obligation to protect the mortgage lender or title holder in specific cases of loss.

Similar to Strict Mortgage Insurance, Decreasing Term Insurance is a policy whos premium, and benefit, decrease over time- so that the benefit matches your outstanding Mortgage balance as you continue to pay it off. The main difference between Strict Mortgage Insurance and this is that there is flexibility when it comes to the benefit. Your family doesn’t have to instantly pay the mortgage off if they think there are more pressing expenses (Final Expenses, Long Term Care Debt, etc). Think of this as Flexible Mortgage Insurance. In addition, you may actually save money by going this route, because your personal health is considered more here when the carrier determines your premium, than it is with Strict Mortgage Insurance.

Level Term Policies are used most often to cover not only Mortgages, but the aggregate of expenses that you don’t believe to be permanent. For example, many term policies are used to cover the cost of college education for children, mortgage payments, final expenses, outstanding debt and a certain amount of lost income. Compared to the Decreasing Term Plan mentioned above, the difference if you haven’t already guessed is that you will pay the same premium amount, and the benefit amount will remain the same, for the life of the policy. Whereas with Strict Mortgage Insurance and Decreasing Term Insurance, your policy duration is directly related to how long it will take to pay off your mortgage, with Level Term, you choose the duration of the policy depending on what exactly you’d like covered, and how long you estimate it would be before those expenses are paid off otherwise.