Gustavo Franko
Why you shouldn’t buy mortgage protection insurance:
Mortgage protection insurance is more of a disadvantage than an advantage.
Lack of flexibility: Death benefit can help ease or erase the financial stress of paying a mortgage but your family may be left with some other bills and debt they may not be able to afford.
On the other hand, with a normal life insurance policy, your family can spend the claim for the most important bills. It could be mortgage payments, other loans, or college tuition.
Declining payout: Your premiums stay the same but the payout amount goes down as you pay your mortgage off. The premium is most of the time higher than what you would pay for term life insurance.
A term life protection strategy can give more cash than a home loan extra security strategy. A term strategy permits you to pick your inclusion sum and strategy length. Assuming you need to fix up those choices with the home loan you can, however, you’re not compelled to.
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