Buying a home is an expensive undertaking, but one that you’ll most likely take on willingly. A home represents stability, the opportunity to own an asset that appreciates over time, a place to raise a family, and where memories are made. But most people buy homes when they’re married as two incomes make it easier to afford a mortgage than just one. That means if one spouse passes before their time, the remaining spouse is left with the burden of paying the mortgage. It’s a heavy blow to the finances of the family and can lead to the unwanted result of the family losing the home.
Insurance can take care of the mortgage in the event of an untimely death. Mortgage life insurance and term life insurance are two types of policies that cover the remaining balance when one of the owners passes away. But mortgage insurance isn’t always as beneficial as it seems on the surface. It only covers the mortgage balance, and the benefit goes directly to the mortgage company. Whereas term life insurance comes with the flexibility to pick an appropriate benefit amount that covers the mortgage balance, covers lost income, can provide funds for college education for children, and helps the remaining spouse stay afloat.
Take the quiz to find out how much you know, or don’t know, about the differences between term life and mortgage life insurance. You might be surprised at the differences between the two types of coverage, and why one is better than the other.