Do You Need a Life Insurance Policy With Mortgage Protection?

Life insurance is a necessity that can provide individuals with valuable peace of mind. This point is especially true for homeowners, as they take on special financial responsibilities when they secure a mortgage and purchase a house. Without the guarantee of a death benefit through a life insurance policy, the duty of paying for a mortgage falls on a spouse or close family member. If that person can’t pay for the property, it will be foreclosed — potentially leaving someone you care deeply about without the home you’ve worked hard for.
A life insurance policy can cover the cost of a mortgage upon your death. Unfortunately, many people don’t consider life insurance until having a child or purchasing a home. People want to give their families some financial security, and life insurance policies provide that security for homeowners.
Note that you may not need a policy with a substantial death benefit in certain situations. For example, if you have a low mortgage balance, a policy that offers less coverage could be OK. In this case, you’ll either face less of a risk of death before you pay off the mortgage or the remaining amount will be manageable for your family.
Getting an insurance policy without mortgage protection can lower your monthly premiums — an important factor to consider. Explore the in-depth FAQs on HealthIQ.com to learn more about getting special insurance rates with mortgage protection.