If you’ve purchased a new home or condo recently, you know that mortgage payments will be just one of your many ongoing financial responsibilities in the coming years. And although mortgage rates are near historic lows, history tells us that rates will undoubtedly rise in the future, putting you and your family under financial pressure.
But a sobering reality is that higher mortgage payments or a leaky roof aren’t the worst things that can happen when you own a home.
If the unthinkable were to happen and you were no longer here, would your loved ones have the means to continue to pay the mortgage for your family home?
Term Life Insurance Versus Mortgage Insurance.
One of the easiest ways to give your family the security they deserve is to ensure you have enough insurance in place to cover your mortgage and more, in the event that you pass away.
Some homeowners opt to go with the mortgage insurance banks offer when you sign the mortgage papers. It’s fast, easy and convenient – and you only have to answer a few basic health questions. But here are some important things to note…
Term Life Insurance = Less Expensive, More Flexible.
Mortgage insurance pays out the amount left owing on your mortgage when you pass away. As your mortgage balances declines each month so does your coverage, yet your premiums remain the same. With term life insurance, the amount your beneficiaries will receive never declines. It remains the same throughout the term of your policy.
Moreover, if you die, term life insurance pays the entire tax-free, lump sum death benefit to your beneficiaries, so they have the freedom to decide how the money should be spent. Mortgage insurance pays the remaining balance of your mortgage to your bank.
Mortgage Insurance Doesn’t Move with You. Term Life Insurance Does.
If you have mortgage insurance and switch homes – or lenders – you’ll have to apply for a new mortgage insurance policy, and will have to undergo medical underwriting, which may, depending on your age and health, increase your premiums.
Term life insurance, on the other hand, isn’t attached to your debt. It’s attached to you – so it moves with you, no matter where you call home.
If you’re a first-time home buyer looking to purchase long term protection to cover your mortgage and your family’s other financial obligations, CAA Term Life insurance is the ideal choice.
- Coverage amounts from $50,000 up to $1,000,000
- Insurance rates are locked-in for the term you choose: 5, 10, 15 or 20 years
- Save 25% every year on coverage more than $250,000; 30% on amounts more than $500,000
And if you already have mortgage insurance? Consider the many benefits you’ll enjoy by increasing your term life insurance coverage to include your mortgage debt as well.
Buying a home may be one of the smartest decisions you’ll ever make. Protecting that asset and your loved ones with CAA Term Life insurance may be one of the wisest decisions.
Learn more online today or call: 1-888-334-4568.