Mortgage Life Insurance - Is There A Better Way?

Mortgage life insurance, strictly speaking, is a form of life insurance that will pay your mortgage if you die or even become disabled. The question is, should you buy a specific mortgage protection policy or go with something else?

Mortgage protection life insurance used to be mainly a decreasing benefit type of policy. That meant that as the mortgage was paid down, the benefit from the policy decreased as well. Nowadays, most mortgage life insurance is sold as a level term policy meaning that the benefit amount stays the same through the length of the term, no matter what your mortgage balance is.

Sometimes you can get a Return of Premium rider for the policy, which means you get the premiums you've paid back if you haven't used the coverage at the end of the term.

Many financial advisers, however, feel that you shouldn't purchase a specific mortgage term policy but rather a regular term or permanent life insurance policy based on your entire financial situation. One reason is because it gives your survivors more flexibility; for example it may be beneficial to your spouse to keep the mortgage payment and have the life insurance proceeds cover other expenses. Think about your family's needs first.

Costs for mortgage protection policies versus other types of life insurance policies can vary quite a bit. Also, costs for the same type of life insurance -- such as term -- can vary between companies. Because of this, experts advise that you shop around and get at least three different comparison quotes -- whether you want to buy mortgage protection insurance or any other type of life insurance.

When you get comparison quotes, make sure to ask for the same coverages and terms to get the most accurate comparison. The Internet makes it easy to get comparison life insurance quotes -- especially if you visit a comparison site that allows you to enter your information once and then provides several different quotes back.

To get free comparison life insurance quotes or learn more about life insurance visit Justin Scott writes about insurance.