The face amount under mortgage protection term insurance decreases over time, consistent with the projected annual decreases in the outstanding balance of a mortgage loan.
Most people change mortgages many times in their lifetime.* The need for a level death benefit over a longer time makes more sense.
Mortgage protection policies are generally available to cover a range of mortgage repayment periods, e.g., 15, 20, 25 or 30 years. Although the face amount decreases over time, the premium is usually level in amount.
“With level term premiums at an all time low and the new term to age is 120 years, there are much better options than mortgage protection term insurance” -Bill Zimmer
Based on market conditions, it may be in your widows' best interest to take the money and invest it elsewhere versus paying off a low interest mortgage.
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