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Are you looking for a Houston TX mortgage life insurance policy that best fits your situation? There are several types of life insurance out there, but not all of them will necessarily suit you and your family’s circumstances. There isn’t a one-fits-all life insurance policy, so you have to shop around for the one that fits your needs the best.
Choosing the right policy for you depends on your current living and financial situation. You should list out all your wants and needs from your life insurance policy. Then you’ll want to consider your financial and medical conditions. Once you have a better understanding, you can contact an insurance agent to hear all your available options.
Most people buy life insurance to make sure their family still has stable footing after their passing. These situations include a number of instances: their children’s education, house payments, debts, medical bills, or after-death finances like the burial or funeral. Buying life insurance is assuring financial protection for your family in the future.
Of course, there are life insurance policies for specific situations. Other than the general types of personal life insurance, like whole or term life insurance, life insurance companies designed these with exceptions in mind. One of them is mortgage life insurance. These were designed to pay off your remaining mortgage in case of an accident before you and your family pay it off.
Houston TX Mortgage Life Insurance
A mortgage life insurance plan can help your family remain in your home after you’re gone. Typically, you’ll want to buy this type of policy when you buy a house or soon after. You’ll want to match the years you have to pay off the mortgage with the policy’s length. It’s a decent way to give your family peace of mind.
There is another benefit to choosing a mortgage life insurance policy. This type of plan doesn’t usually require a medical exam to apply. Some people who can’t qualify for other insurance due to health issues can apply for this one without worry.
However, unlike normal private life insurance policies, there are several differences. The first is what happens when the borrower dies. With a traditional life insurance policy, your family receives death benefits if you die. However, a mortgage life insurance doesn’t give the payout unless you die during the mortgage’s existence.
There’s also a noticeable difference. Unlike traditional policies, you can’t choose the beneficiary with mortgage insurance. With other life insurance, you can choose who receives the death benefit amounts after your passing. Of course, usually, it goes to your family, but with mortgage life insurance, the beneficiary will be your mortgage lender.
Also, unlike level term insurance plans, mortgage life plans operate like decreasing term policies. Although the premium you pay will remain constant throughout the policy’s lifespan, the payout will decrease to match your remaining mortgage payments. So unlike the typical term life policies, you’ll be paying for more the closer you get to the end of the policy.
Comparing Term Life Insurance to Mortgage Life Insurance
Most people tend to buy the typical term life insurance policy. It’s temporary, usually 10 to 30 years, and can protect your family for an affordable amount. You can choose your own beneficiaries, so they can allocate the money to whatever is necessary after your passing. Of course, that may end up with the mortgage lender anyway, but they’ll be able to use any remainder as they see fit.
Term life insurance usually has level premiums and death benefits. These amounts will remain the same throughout the policy’s lifespan. So unlike mortgage life insurance policies, even if you die near the end of the policy, your family can use the remainder of the money after paying the mortgage for other things.
On the other hand, most term life insurance plans require a medical exam to apply. This may be a barrier if you know you or your family have a medical history that would bar you from qualifying.
Houston TX mortgage life insurance is usually only viable when you want to protect your house while knowing you’re in bad health, or you’re using it as a supplementary policy with something else.
The lack of choice on who receives the money means this type of policy is only for you to pay off the mortgage. It allows your family to keep the house, but they can’t allocate the money elsewhere if there’s something more pressing.
Choosing the Life Insurance Policy Right for You
For most families, buying a house is a huge investment since it’s their most significant asset. If something happens before you can pay off the mortgage, that investment could become forfeit. Mortgage protection insurance is critical if you want your family to keep the house.
There are several life insurance options you can choose from. However, depending on your own circumstances and what your family needs, it might narrow down your options. Contact an insurance agent to hear everything available to you.
In some cases, a mortgage life insurance is the best for you. With no need for a medical exam, it’s optimal if you aren’t in the best of health or need insurance fast. Companies designed this type of life insurance specifically for mortgages, so you know where the money is going. However, you can’t choose who the money goes to.
The length of the policy will match your mortgage payments. The death benefits will also decrease accordingly, so if you die while paying off the mortgage, your lender will receive the full payment. It’s a way to assure your family keeps your house, although you probably can’t use the money for anything else.
Choose carefully if you think a mortgage life insurance policy is the most optimal for you. Before you make your decision, you should contact an insurance agent. They can discuss with you and offer you all the available options on the table. The agents with Best Life Insurance Houston Agency can tell if a Houston TX mortgage life insurance plan best suits you or not.
Houston, TX Fun Facts:
- More than 145 languages are spoken in Houston, including Spanish, Vietnamese, Chinese, Hindu, German, and even Tagalog.
- The scale replicas of the Chinese tomb warriors that used to line the Forbidden Gardens were sold off for $100 each.
- The Swaminarayan Mandir is the first traditional Hindu Mandir in the nation.
- The Viet Hoa supermarket offers a massive collection of hard-to-find International foods, including…live frogs?
- For more fun facts, visit Houston’s official site.