Life Insurance vs. Mortgage Insurance

A lot of consumers have no idea what the differences are between life insurance and mortgage insurance.

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Protect Your Home, Not Just Your House

Over 50% of consumers say the main reason they own life insurance is to protect their mortgage (2018 LIRMA Insurance Barometer Study), but others currently have no clear idea exactly how their life insurance relates to their mortgage. If you’re among them, search no more for your answers! I have taken the time to compile a quick and simple comparison of the two. When comparing Life Insurance vs. Mortgage Insurance, you will find that a life insurance policy helps protect not only your family & income, but also your home in case of premature death or the financial impact of a terminal, chronic, critical illness, or critical injury. Mortgage insurance also protects your home in similar cases, however, it does not specifically protect your family or income. To break it down further, let’s look at the differences side by side!

Life Insurance vs. Mortgage Insurance

With mortgage insurance, as you incrementally pay down your mortgage, your coverage incrementally declines. Also, when you get a new home, you must re-submit for insurance. When you pass away, your mortgage insurance covers your home and nothing more. Alternatively, with life insurance, your coverage remains the same as you pay down your mortgage, and when you move, your coverage moves with you. There is no need to re-apply when you relocate! To top it all off, when you die, your life insurance covers your home and then some! The money left over from paying off your mortgage can go to support your family’s future.

Additional Benefits

Many life insurance carriers offer additional benefits such as accelerated benefit riders. For those clients with illnesses or injuries, this is especially helpful. These additional benefits may include coverage for terminal illness, chronic illness, critical illness, and/or critical injury. By protecting your mortgage in the event of any of these ailments, including untimely death, you can give your family the sense of security that they not only need but deserve. Plus, you will have the comfort of knowing that your family can live in the same house, attend the same school, church, and extracurriculars, and keep the same lifestyle even if you pass away. Get a quote today!

Life Insurance Questions?

We hope that this information on Life Insurance vs. Mortgage Insurance is useful to you.

If you’d like to learn how we can help you plan your retirement, call Empower Brokerage at (888) 539-1633 to speak to one of our Life and Annuity experts or leave a comment down below.

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