Term Life Insurance Policy

Term life insurance policies are designed to only cover a certain amount of time, for instance, to cover a 30 year mortgage, or to cover lost wages while raising a family.

Premiums are much more affordable and many carriers may waive the standard medical exam required on a whole life policy.

An attractive alternative to mortgage insurance is to purchase a term life insurance policy for at least the amount of the mortgage.

If you pass away during the “term” when the policy is in force, your beneficiaries will receive the proceeds of the policy tax free which they can use to pay off the mortgage. Term life gives your beneficiaries greater flexibility.

Unlike the proceeds of mortgage protection insurance which go directly to the lender, term insurance goes to your beneficiaries to use as they see fit. For example, in today’s low mortgage rate environment, they may opt to pay off high interest credit cards and use their cash flow to continue paying off the mortgage.

They can also use it to pay for college education, home improvements, or retirement planning.

Term insurance is generally more affordable than mortgage protection insurance, especially if you are healthy. In addition, standard term insurance offers a level benefit and a level premium for the term of the policy. With mortgage protection insurance, the premiums may remain the same, but the value of the policy decreases over time as the balance of your mortgage declines.

Please contact Kevin Flanagan via the form below if you would like to discuss the right options for you.