Mortgage Life Insurance

Mortgage protection life insurance is simply insurance that is meant to pay off your mortgage in case of your death while the mortgage is not fully paid.

The original type of mortgage life insurance followed the amount of the mortgage balance so, as your mortgage obligation decreased, so did the amount of insurance. Today it usually makes more sense to get mortgage life insurance equal to the original mortgage amount but instead of a decreasing amount of insurance, you simply get the most inexpensive level term insurance.

Recently it has become more common to buy return of premium policies for mortgage term life insurance. The reason this type of insurance is used is that currently traditional mortgage life insurance rates are not as competitive as most term life rates. and with return of premium, if you keep the policy, you get all the payments paid back to you.

The most affordable is the level premium, level benefit term life policy. This type of insurance can be purchased for a period of time such as 30 years, 25 years, 20 years etc. The policy amount is guaranteed not to decrease and the premium can be guaranteed for the full period of time.

Traditional mortgage protection life insurance is occasionally still marketed by banks and some agents but it may make more sense for you to get:
1. An insurance policy with guaranteed lower rates than a mortgage life insurance policy
2. One that will pay off your mortgage in case of your death
3. The insurance amount does not decrease.

To get a mortgage life insurance quote or an instant life insurance quote for other needs, click here.

Return of Premium Insurance to cover your mortgage

Another method becoming more and more popular is Return of Premium Term Life Insurance. This type of life insurance is term insurance with the added and unique benefit that when you keep it for the full term (20 years, 30 years) you get all your premiums back, tax free!

Using this method, the insurance will be there to pay off your mortgage but in the likelihood that you live and you keep the policy, the insurance company guarantees to return all the money that you paid on the policy and since it’s considered a return of what you put in, it comes back tax free. This kind of mortgage term life insurance can be more appealing since it is likely that you will live to the end of the term period.

This money that comes back to you on a return of premium life insurance policy is money that you can use to enhance retirement, take a trip you dreamed about or just enjoy any way you please.

Learn more about types of life insurance or get an instant life insurance quote online.

By : http://www.lifeinsure.com