Buy a house and they will
come: Offer upon offer upon offer for mortgage protection insurance.
"Guarantee a mortgage-free home for your family!" they say. Sounds
sweet, until you read the fine print and discover whatever it is they're
selling is contingent on your death. If you're thinking that sounds
vaguely like life insurance, well, give yourself a few snaps. Mortgage protection insurance
is, in fact, a type of term life insurance that covers your monthly
mortgage payments if you die. It's narrower than a traditional term life insurance policy,
which covers a variety of expenses via a tax-free lump sum of cash paid
(known as the death benefit) to a loved one after your death.
Confused? No worries. Let's break down the key differences between the two.
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