Anyone who has purchased a house recently has very likely received a postcard in the mail with an offer of “mortgage insurance.”
The card will have the lender and mortgage amount referenced to look as if it’s an official document, possibly sent by your lender. The headline reads, “Would you like to leave your family a mortgage free home if you die?” If your answer to this question is yes, then the answer is mortgage insurance. What exactly is mortgage insurance and who is sending you this postcard?
The term “mortgage insurance” is really a misnomer.
What you are being offered is a life insurance policy to help pay off your mortgage. The card is not coming from the lender, but from a marketing campaign that accessed public records for those that have recently closed on a new home or refinanced their current loan.
If you have just purchased your dream home or refinanced and you would like your mortgage paid off if you die, the most efficient way to accomplish this is with the lowest cost term life policy available for the amount of your loan balance.
You would want the number of years to coincide with your loan. So if you have a $150,000, 15 year loan, browse quotes using our Term Life Insurance Quotes Calculator for a $150,000 death benefit and a 15 year term. This will give you an idea as to which companies have the lowest rates available. Then give us a call and we’ll help you narrow down the options to the policy that will work best for you.
By the way, mortgage insurance, or term life to pay off your home is not limited to those who have just purchased their home. If you’ve owned your home for several years, a term life policy to cover your remaining balance is always a smart move.