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Q: Do You Recommend Mortgage Life Insurance?

2011 April 18

No.  These policies provide a death benefit equal to the amount of your mortgage in the event of your death. Mortgage Life policies typically start out with premiums equal to or higher than level term life insurance policies.  Each year the Mortgage Life plan is in force, the amount of coverage goes down as the amount of your mortgage goes down. However your premium stays the same.  In essence, the longer you have the policy the worse value it represents.  A level term life insurance plan has the premium and the death benefit remain the same for the level period, thereby representing a much better value.

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