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Other Considerations

  • Mortgage insurance through your lender may have a maximum issue amount. The company whose rates we have quoted has a maximum coverage amount of $500,000. If your mortgage exceeds this amount you will only be protected for a pro-rated amount and your family will be responsible for the excess. For example: Mortgage insurance protects you for $500,000 of a $625,000 mortgage, or 80%. At the time of your death there is $200,000 remaining on your mortgage. Your insurance will pay only 80% of that $200,000.
  • Your mortgage protection does not have to be separate from the rest of your life insurance needs. You can simply add the amount of your mortgage to any other life insurance that you purchase so that your beneficiary can pay off the mortgage (if they choose) and still have adequate insurance protection for income replacement or any other needs that arise.
  • In many personal insurance plans, insurance costs per thousand dollars of protection go down as the amount of coverage that you purchase increases. So including the amount of your mortgage in your total insurance plan may actually decrease the cost per thousand for all of your life insurance.