Insurance policies will pay your mortgage
These kinds of insurance policies will pay your mortgage in the event of death or disability. But the cost of these policies can be three to five times as much as comparable straight term-life insurance, according to Consumer Reports. Plus, the value of this insurance actually goes down as you pay down your mortgage. If you’re worried about burdening your family with mortgage payments, you will be better off buying straight life insurance.
If you have a 30-year mortgage buy a 30 year term policy in the same amount as your mortgage; it will be less expensive that mortgage life insurance or decreasing term life insurance. Lastly you will have better coverage for a better price. Ok, so your getting a new mortgage and you were told you need to get a life policy to cover it and now you are on the hunt. Being a wise consumer you decided to go with a term life policy because you understand that they give you the best rate of all the different types of insurance. So here’s the low down on how to find the best policy
Of all of the term life policies a decreasing life policy will cost the least over time this is because the face value the policy decreases or goes down over time - hence the name decreasing term. This type of policy is perfectly suited for covering mortgages and is sometimes called mortgage life insurance.