After family love, resilient health, precious time
and professional excellence, your greatest asset
may be your home.
If you have a mortgage on your home,
are you concerned how your mortgage would be paid
if you couldn’t work, or if you prematurely passed away
with a mortgage left to pay?
When you buy a home you love, a savvy financial
strategy is to provide resources that protect your life,
lifestyle and legacy for your spouse, children, elderly
parents or other dependents —
in case you didn’t come home one night.
Nobody wants to think of that tragic scenario.
I suggest you expect the best each day–
after you’ve protected your loved ones against
It’s smart to make sure that without you,
your family still has the financial resources needed
to stay in their home and pay off outstanding debts,
including the mortgage, medical bills, auto loans,
credit cards or other obligations.
It’s smart to make sure that long-term financial
planning goals also are fulfilled, like providing
educational funds for your children and retirement
funds for your surviving spouse.
If you are providing financial support for people
who are depending on you, then you probably need
to buy life insurance when you buy your home
to protect your life, lifestyle and legacy–
and avert a financial catastrophe if you or your spouse
weren’t there to provide for and protect your loved ones.
The old way of protecting your mortgage no longer
makes financial sense today. Here’s why that’s true.
When people used to buy a home, they would buy
mortgage insurance which only would pay off the
remaining mortgage balance when the insured dies.
Why avoid outdated mortgage insurance?
Let’s say you have a $500,000 mortgage when you
buy your home, and you pay the outdated kind of mortgage
insurance premiums for 25 years, until there’s only
$75,000 left to pay off your mortgage when you pass away.
The outdated kind of $500,000 mortgage insurance
only would pay the mortgage company the final $75,000
owed on the mortgage when the insured dies.
The new, improved $500,000 mortgage insurance
provides the insured’s beneficiary a $500,000 check
which avoids probate and provides tax-free income–
because it actually is life insurance.
The beneficiary can use this tax free $500,000 payment
not only to pay off $75,000 owed on the mortgage,
but the $425,000 balance also can be used to fund
ongoing financial needs of your family.
What’s the most affordable way to protect your
mortgage with life insurance?
You may choose a 20 or 30 year term life insurance policy
in the amount of your mortgage to cover the term
of your mortgage, typically 20 or 30 years.
When the term ends, your mortgage is paid off and
you no longer need that insurance. It’s fulfilled
Young couples often pay less than the cost of one
date night per month to fund term life insurance
that protects their mortgage.
What determines your premium rate?
* Your health history qualifies you for this
* Non-smokers pay less for life insurance than
* Younger people pay less than older people,
because the cost of insurance increases with age.
The day you qualify and purchase your term life
insurance, you lock in your premium rate
at your purchase age and you pay this premium
throughout your entire term of protection.
You also lock in your health rating for your
entire term. This is valuable protection
if your health changes in time, and you decide to
convert your term insurance into permanent
life protection that covers your entire lifetime.
Be sure to choose an insurance company which
allows “term to perm” policy conversion
at your original health rating which you earned
when you purchased the term protection.
Are there benefits in choosing permanent life
insurance instead of the term of a mortgage?
There are benefits in combining both solutions.
A smart strategy is to purchase inexpensive term
insurance to cover the term of your mortgage,
and let this protection lapse when you are mortgage
Then consider adding permanent life insurance in
your financial plan to build wealth, benefit from
the ups and downs in the market, and provide tax-free
income when it’s needed most during your lifetime–
like in funding college or supplementing retirement
Permanent life insurance now benefits the insured
during their lifetime, while it also protects the goals
and dreams of their loved ones as their legacy.
And as a licensed advisor for a Fortune 400 company,
Anne Morgan helps you select affordable solutions to
grow and protect your income and greatest assets
and have money when it’s needed most.
To schedule your no obligation consultation, contact
Anne by phone at 630.841.5504 or visit her online at