Mortgage Life Insurance

Death is one of the few things in life that in unavoidable. Because you can’t escape it, you should always plan for it. It’s never a fun discussion to have with your family, but it’s one of the most important. Once you pass away, your family is going to be responsible for paying off all of your debts and significant expenses. More than likely, the biggest bill that they will be left with is your mortgage. Do you have final cost life insurance protection that they need to pay off your mortgage if something tragic were to happen to you?

What is Mortgage Life Insurance?

mortgage life insuranceMortgage life insurance is a unique type of life insurance that many people don’t understand when they are going to close their mortgage loan. These types of loans are often misused and could cause problems in the future.

These insurance plans are sold through the mortgage company or bank that you get your loan through. They are bought at the same size as your mortgage and will cover the full price if something tragic were to happen to you. This is one way that you can give your family the protection that they need to ensure that they won’t be left with a massive amount of debt.

When you sign all of the paperwork for your mortgage loan, more than likely, you’ll be offered this insurance. The bank or company might try and scare you into purchasing this additional coverage. When you’re signing all the paperwork, you will be required to sign that you are refusing the mortgage life insurance.

The Advantages of Mortgage Life Insurance

Just like everything else, there are pros and cons to mortgage life insurance policies that you should be aware of when you’re securing a mortgage loan. One of the most commons questions that people ask about mortgage life insurance, is if there are policies are a better option than a traditional life insurance plan?

One of the biggest advantages to these types of plans is that these plans are a great way to give your family the protection that they need if anything were to happen to you. If you passed away, your mortgage could leave your family with massive amounts of debts and put a severe strain on your loved ones.

Another advantage to these plans is that they are simple to use if you were to pass away because the bank or mortgage company is the beneficiary of the policy. If anything tragic were to happen to you, the money would go straight to the company to pay off the loan, without your loved ones having to go through any additional trouble.

Is Mortgage Life Insurance Worth it?

When mortgage applicants look at the mortgage life insurance, they may wonder if this is a good option to get the protection that they need. In just about every case, mortgage life insurance isn’t worth the premiums that you’ll pay for the coverage. There are several major disadvantages to this kind of policies.

The plans decrease in value as you continue to pay off your mortgage. The insurance policy is always the same size of your mortgage loan. The less mortgage that you have, the smaller the size of the policy. Unlike a traditional insurance plan, the won’t remain the same size throughout the course of the plan.

Another disadvantage is the price of the coverage of the mortgage life insurance plan. If you’re looking for the most affordable life insurance plan, a simple term life insurance policy is going to be a much cheaper option than a mortgage life insurance policy.

An obvious disadvantage is that you have no control over who is named as the beneficiary of the policy. With a mortgage life insurance policy, the bank or loan company is automatically named the beneficiary, unlike a life insurance plan where you can name any of your loved ones the recipient of the plan. While a mortgage is probably going to be the largest debt that your family members are left with, there could be other more important bills that they need to pay off, but with a mortgage insurance plan, your family has no control over how the money is spent.

Alternatives to Mortgage Life Insurance Plans

Luckily, if you want to buy an insurance policy that will give your family the protection that they need (and you should), there are several alternatives that you can choose from. The obvious option is to buy a term life insurance policy. A term life insurance plan is going to be the best option for getting affordable protection that can give your family the resources that they need.

Aside from being more affordable than mortgage life insurance, you can buy the policy for the exact length to match the duration of your mortgage. These plans are going to keep their value during the plan, it won’t decline through the years. If anything tragic were to happen to you, your beneficiary would be given the payout from the plan, and they could use the money for whatever pressing needs that they have.

Even if you’re in a bad health, or you’ve been declined for coverage in the past, don’t assume that you won’t be able to get the coverage that you need. There are plenty of options for affordable life insurance. If you have several severe pre-existing conditions, we can help you find a no medical exam policy or risk life insurance that will allow you to get life insurance protection for your mortgage loan.

No Medical Exam Policies

As you can assume from the name, these life insurance plans will give you the insurance policy without being required to undergo the exam before getting the coverage your loved ones need. A no medical exam policy is typically designed for people with pre-existing conditions like heart complications, diabetes, or anyone diagnosed with cancer.

Just about anybody can give insurance coverage, but with a no medical exam, you will pay more every month for the coverage. It’s best to use no medical exams as a last resort for mortgage insurance protection.

With these plans, you can get life insurance coverage much quicker than you can with a traditional life insurance plan that requires you to go through the medical underwriting, because you don’t have to wait to schedule the medical exam and wait for the company to review the results. If you want to get life insurance protection as quickly as possible, a no medical exam is the best way to go, but the security comes with the additional costs.

There is a significant disadvantage to these plans is that there is a limit on how much coverage that you can buy. With most no exam plans, you can only buy a plan that goes up to $250,000. For some applicants, this may not be enough to cover your mortgage. You can either buy more than more life insurance plan, or you’ll be forced to purchase a plan that requires you to go through medical underwriting.

Mortgage Life Insurance – what you need to know

Buying a house is a huge purchase. Probably the biggest purchase that you’ll ever make. You’ll spend the next 30 years paying off that house, but if something tragic were to happen to you, your loved ones would be responsible for paying for all of those payments, which can put a serious strain on your loved ones. When you go through the mortgage paperwork, the loan agents may try and scare you into one of these mortgage life insurance policies,

One of the best ways to get life insurance protection is to work with an independent insurance agent, like ours. Unlike a traditional insurance agent, an independent agent doesn’t work with one particular company. Instead, we represent dozens of insurance companies across the United States. Our agents have years of experience working with companies that are going to give you the lowest rates for your insurance policy.

Every insurance company is different, which means that you could receive drastically varying quotes for the same amount of coverage. It’s easy to see why it’s important to get quotes from dozens of companies before you pick the one that works best for you. Don’t waste your time calling all of the agents yourself, let us do all of the work for you. We will be happy to bring all of the rates directly to you.

If you have any questions about getting the perfect life insurance or about mortgage insurance, please contact one of our agents today, and we would be happy to answer those questions and ensure that you’re getting quality and affordable life insurance protection

About Jack D. Davis at
About Jack D. Davis at

Jack D DavisBorn and raised in a quiet suburb of Philadelphia, PA, the youngest of nine children, son of two wonderful parents, Jack developed his work ethic early on. While attending West Chester University, he volunteered to join the US Army Reserves for a six-year enlistment. Attending college during the day, working evenings, and fulfilling his military obligation on various weekends, Jack learned the value of hard work and time management. After graduating from college (BS in Business Management), he began working as a sales representative for a Fortune 100 company and honed his marketing skills. In 1985 Jack started his financial planning career as an agent with Mutual Benefit Life.  After Mutual Benefit Life ran into financial difficulties, Jack decided to “go it alone”. His company, “Eagles Soar Enterprises, LLC.” successfully grew for almost 30 years. Jack’s skill-set is understanding and recognizing the personal needs of families and business owners. His patience in explaining the numerous options available is greatly appreciated by his clients. Jack agrees that life insurance is a difficult topic and people are rarely “excited” about discussing the subject. When Jack was 23 he witnessed firsthand how important life insurance is when he lost his Dad to cancer. Jack’s Mom used the life insurance proceeds to help minimize the financial loss.  Jack recognizes how critically important proper insurance planning is to the surviving spouse, business partner and, most importantly, the children of his clients. In his free time Jack enjoys playing tennis, horseshoes, ping pong, exercising, reading and attending Philadelphia Eagles football games. Jack has two wonderful children and currently resides in beautiful St. Petersburg, FL. Questions? Call Jack at 1.800.277.3098 or email:

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