Mortgage life insurance is important if you don’t want to leave your loved ones with the burden of paying your mortgage. When you purchase mortgage life insurance, upon your death, the beneficiary is given the amount needed to pay off your mortgage.
The mortgage company or bank is often the beneficiary in this type of policy. However, in some cases, people assign one of their loved ones as the beneficiary which gives them the choice of whether or not to pay off the mortgage or to receive the proceeds themselves. After the death of a loved one, there may be more pressing financial needs than paying the mortgage and this gives your family the flexibility to make the decision.
For more information regarding mortgage life insurance, please give us a call at Nickerson Insurance Services, Inc. A life insurance agent will help you plan financially and minimize the financial impact of your death.