If your purchase a new home with a mortgage, or if you refinance your home, you are sure to get some offers for a product called mortgage insurance or mortgage life insurance. The card in the mail, or the phone call on your answering machine, will probably offer to protect your home mortgage in case of death, and maybe disability, and critical illness. In addition, you will see some mention of mortgage unemployment benefits.

In general a mortgage life insurance policy is a no medical exam term life insurance policy with a face value that matches your mortgage balance. Sometimes other obligations are added in too, since there is really no rule about having the face value matching a mortgage in most cases. In some cases, this is a decreasing term life policy since the premiums will be lower since the coverage gets lower as time passes, matching a lower loan balance.

Sometimes the policy offers a ROP Term Life Rider which will actually refund the premiums if the insured person survives the policy. The unemployment benefit on most mortgage insurance policies simply pays the premium during unemployment, though other forms of mortgage unemployment benefits are available.

Related posts:

1. Decreasing Term Life Insurance
2. Buying the Best Life Insurance For You and Your Family
3. Life Insurance At Your Age? (Over 50 to Seniors)

Why Buy Decreasing Term Life Insurance?

Many people buy low cost decreasing term life insurance so they can get an affordable premium that will suit their needs. This is used when a person decides that their need for coverage will decline over time. Since the face amount of the policy declines, the premiums should be even lower than they are for a typical term policy where the premium remains the same.

It is easy to understand when you consider a common use like mortgage life insurance.

Example Use Of Decreasing Term

If a mortgage carries a $150K balance, then that might be a good face value for the life insurance policy. Likewise, if the mortgage has 10 years to go, then a 10 year term life insurance policy . would be a good choice.

As the mortgage balance declines, so does the face value of the life insurance death benefit. For intance, half way through the policy, maybe only $75K would still be owed, and the policy could have a value close to that.

The good thing, is that insurance companies will charge less for a decreasing face value life insurance policy because their risk gets lower as time passes.

How To Quote Or Buy Decreasging Term

You can simply hop over here for term life insurance quotes. You are under no obligation to buy, but the online quote system can help you search for good companies with the products you want to learn more about!

The fact that the face value of the policy gets reduced over time means that your premiums should be even lower than they would be for straight term life.

Related posts:

1. What Is Mortgage Life Insurance?
2. Return Of Premium Term Life Insurance
3. Find Term Life Over Age 50