Protecting your home and family
A Life insurance policy can protect your family from the financial obligations of making mortgage payments without your salary. In the event of your death, your family will still be accountable for mortgage payments, which may be unaffordable without your contribution.

To protect your family from such a burden and possibly losing their home, we recommend purchasing a life insurance policy. Although there are other insurance options, such as mortgage protection insurance, the wisest and most economically sound choice, is to buy a life insurance policy.

The death benefit of your life insurance policy should include the amount of your mortgage. In the event of your death, the policy's proceeds will cover the entire cost of your mortgage, your house will be paid off, and your family will have one less thing to worry about.

The alternative to mortgage protection insurance
If taking out a mortgage has already substantially cut into your finances, life insurance is even more important. Although your mortgage payments may make paying premiums for a whole life insurance policy unimaginable, there are inexpensive options.

As an alternative to purchasing a permanent life insurance policy or mortgage protection insurance, explore the option of buying a term insurance policy for the same duration as your mortgage. Premiums will be considerably lower and coverage will remain the same.

At the end of the policy's life, you can decide whether you want to renew, convert, or discontinue the policy. This approach guarantees mortgage protection at the lowest cost.

The lowest cost alternative
The best choice, in terms of cost, is a decreasing term life insurance policy. If the sole reason for purchasing a life insurance policy is for mortgage protection, investing in this type of term insurance is your best bet.

At the start of a mortgage, you owe the most to the bank, mortgage protection should reflect the fact. However, since after a few years of making payments, you owe significantly less, decreasing your protection is a logical move. A decreasing term life insurance policy allows this.

You can design your life insurance policy so that protection is the same amount as your debt. Although the premiums do not decrease over time, your mortgage life insurance quote will be considerably lower than if the quote you would receive if the policy's coverage were level throughout its term. Some policies annual premiums are the same as the level coverage, but the payments end earlier than the end of the policy. For example, the premiums on a 20 year mortgage protection insurance policy are required to be paid for only 16 years even thought the coverage will last all 20 years.

Do you want to apply right now for mortgage protection insurance? A mortgage life insurance quote is available through Insurance Services, a highly recommended online agency specializing in affordable term insurance quotes.

Consider mortgage life insurance, covering the balance on a mortgage, should a primary earner die. Many people purchase mortgage life insurance directly from their bank whenever they renew their mortgage. While this may seem the easiest route, it may not be the least expensive - or the best available product. Mortgage life insurance is considered by the insurance industry to be 'decreasing term insurance'. There are two aspects of the product you should be initially considering. The first is the amount of insurance that will be paid out, the second is the premiums or the cost of the insurance.

Mortgage life insurance compared to level term life insurance (amount of insurance):
The insurance industry offers a product called term life insurance that's similar to mortgage insurance. Both term insurance and mortgage life insurance offer a fairly pure type of insurance with a death benefit payable upon the insured's death, no cash values, and relatively inexpensive premiums compared to other insurance types. In fact, mortgage life insurance is a subset of term life insurance.

The death benefit for mortgage life insurance is tied to your mortgage balance. As you pay down your mortgage, the death benefit is lowered to exactly match the remaining balance of your mortgage.

With most term life insurance products the face amount remains level as long as the policy is in good standing. The insurance amount is not tied to your declining mortgage balance. In the event of your death this remaining balance can be paid tax free as a death benefit to your dependents.

Mortgage life insurance premiums compared to level term life insurance (premiums or cost):
Mortgage life insurance premiums are level and remain that way during the life of your policy. As noted above however, the actual insurance amount is declining. If you start off paying $300 per year to cover a $200,000 mortgage, in twenty years if you have only a $50,000 mortgage you are still paying the same $300 premium to cover the $50,000 mortgage.

With level term life insurance, you can choose from a variety of durations or 'terms'. If you choose a 30 year term life policy, premiums would remain level for 30 years - as would the amount of insurance coverage. So in twenty years you would still be paying the same $300 premium (just like the mortgage life insurance) but your insurance amount would still be $200,000.