Mortgage Protection Life Insurance West Virginia WV
Reader’s Question:
I have a pretty big loan against a house I bought 3 years ago. Is there a type of life insurance that may be used to hedge my home loan to in the event I get disabled or unexpectedly die?
Dwayne
Charleston, WV
Dwayne, what you are looking for is a mortgage protection life insurance. The mortgage protection life insurance will pay off your outstanding housing loan balance in the event you die or get disabled while you are still amortizing your house.
Originally, mortgage protection life insurance is based on your amortization program, the payments for which decreases as the years progress, assuming you are able to pay your home loan regularly. As your loan decreases over time, so does your mortgage life insurance coverage. However, as mortgage life insurance is usually just a special type of term life insurance, your premium payments will do you no good if you happen to outlive your amortization payments on your house.
But don’t get disheartened as there are new mortgage life insurance products now available in the market. What is mentioned above is a traditional type of mortgage protection life insurance. There is now a life insurance coverage that is really becoming popular because all the premiums you have paid will be returned to you. So, Dwayne, when you go shopping around for mortgage life insurance in West Virginia, you should make sure to assert to your life insurance broker that you need an insurance policy that will give your premiums back at the end of the term.