A lot of time and effort goes into shopping for your dream home. You also probably spent a considerable amount of time shopping the market for the best mortgage rate available. Once you made your final decision, the lender offered you Mortgage Insurance to protect your most prized asset. On the surface it seems like a good idea, protecting your loved ones against unforeseen illness or premature death is a prudent decision. You can even tack the monthly premiums onto your mortgage payment for one simple withdraw each month.
But before you agree to Mortgage Life Insurance through a lender, you should explore your options. Protecting your mortgage with an individually-owned Term Life Insurance policy will provide better value and more flexibility – usually, at a much lower cost.
How Much Can Adam and Sarah Save with Individual Insurance?
Adam and Sarah are purchasing a new home. They are both 36 years old and have a young daughter. Both are professionals, in good health and are non-smokers. They are purchasing a home with a mortgage amount of $400,000. They liked the idea of protecting their loved ones against unforeseen illnesses or premature death as they depend on both incomes in order to maintain their lifestyle.
Adam and Sarah were talking to one of their friends about mortgage insurance, and their friend told them that they did not need to purchase mortgage insurance through the bank and that it would be a good idea to discuss their insurance needs with an insurance broker. Their friend highly recommended SecurePlan Insurance Solutions. After doing a proper needs analysis, they determined that their budget for insurance could be better allocated towards a customized plan that will offer Adam and Sarah much more value for their dollar.
After reviewing their options, Adam and Sarah decided on proceeding with a customized plan that provided them with the necessary amount of coverage at the lowest cost today. They also liked the fact that they were able to make future changes to these individual policies without the need to go through medical underwriting again. The Term 10 Life policy can be exchanged for a brand new Term 20 policy or converted to a permanent policy in the future. The Disability insurance has a feature that allows them to purchase more coverage as their income increases without the need to go through medical underwriting again. The T10 Critical Illness plan can be converted to a Term 75 plan. These options provided Adam and Sarah with the peace of mind that they can be properly insured today and in the future.
Insurance is nothing more than a promise to pay in the event of an unfortunate circumstance that would otherwise cause a financial burden to you and/or your loved ones. Mortgage life insurance is designed to cover just your mortgage, where as a customized individual plan can help allow you and/or your family to maintain your current standard of living in the event of a premature death or disability.
Where do you see more value for your dollar?