A mortgage protection life policy is set up as a temporary means of protection for your heirs so your mortgage is paid for if the unthinkable occurs. This way your family will be able to get on with life with less stress by removing the worry about having to make monthly mortgage payments. There are two general types of mortgage protection life policies: Decreasing Term and Level Term.
Life Insurance Planning
Mortgage Protection Life
Level Term Mortgage Protection Life
Some people have their mortgages arranged so they need only pay the interest on the loan and the balance remains the same. This is usually a tax strategy, and requires special coverage. The level term mortgage protection life policy fills that need, in that the coverage amount remains the same for so long as the policy is in effect.
Decreasing Term Mortgage Protection Life
In the decreasing term mortgage protection policy, the coverage will be reduced over time (ideally as your balance decreases) and expires with no cash value at a predetermined date. This is the usual type of mortgage protection policy people have because it is generally very inexpensive for high levels of coverage. It's usually a lot more expensive to get the coverage offered by your lender than what you could get through an insurance company.
These Financial Management Services are Offered by The Abbott Bennett Group LLC.
Abbott Bennett is an Independent Advisor of The Estate Plan.
All annuities are products of the insurance industry and are not backed by any bank or insured by FDIC
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