Mortgage Life Insurance

The majority of mortgage holders are under the impression that obtaining a classic mortgage life insurance policy - also called decreasing term life insurance - is the best way to insure their family is protected in case of one's death.

That is not the case. The cheapest and best way is to buy a term life insurance policy with a term equal to the mortgage term. For example, if you have a 30 year mortgage, you should get a 30 year term life insurance policy - this way your family is protected for the full term of the mortgage, and they will receive the entire amount of the initial policy, it will not decrease.

 

References:

http://money.cnn.com/2003/12/19/pf/expert/ask_expert/

http://www.profam.com/mortgage-life-insurance.asp

http://www.insure.com/articles/lifeinsurance/mortgage-insurance.html

http://www.mortgagelifeinsurance.biz

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