Do you need Mortgage Insurance or Term Life Insurance?
When you buy your first home, you will likely be asked if you want mortgage insurance. The question you may have is: if you already have life insurance, do you really need mortgage insurance too?
Mortgage insurance pays off your mortgage if you pass away, so your family can still afford to live in the home. A term life policy can also provide that kind of protection, while covering your other life insurance needs too. So instead of taking out separate mortgage insurance, you could simply choose a term life policy with sufficient benefits to cover all your mortgage and life insurance needs.
If you already have a life insurance policy, it is very important to check whether it is sufficient to cover your new mortgage. If not, you can simply add an additional mortgage policy. Then when your home is eventually paid off, you can let the mortgage insurance expire and just keep your life policy.
How much Insurance do you need?
Deciding how much insurance you need to cover both your mortgage and your life can be difficult. To get started you can try one of the many free online insurance calculators. If you would like more detailed information we can introduce you to a trusted local insurance expert for a free consultation.
Whether you end up with mortgage insurance, life insurance or both, you will have peace of mind knowing your family’s future is protected.