If you have a mortgage on your house and want to make sure that your spouse will be able to stay in that house should you pass away before the mortgage has been paid off, it makes sense to purchase term insurance. When you first qualified for a loan to buy your home, you were approved for a certain amount of money based on your income and ability to repay the loan. If that income suddenly disappears, your family or heirs will be responsible for making the remaining mortgage payments.
If you do not want to place that burden on your loved ones, you can buy a mortgage protection term insurance policy for your Burlington, North Carolina home, and take care of that possibility. Another way to deal with such an unfortunate occurrence is to take out a level term life insurance policy that is at least as much as your outstanding mortgage.
When you buy a house, you will typically receive offers to purchase a policy to pay off your mortgage should you die during the life of the loan. Your mortgage holder is the beneficiary and the policy issued is a version of decreasing term life insurance. Your rate is calculated over the life of the home loan. You pay the same premium each month and it can be paid along with your principal, interest and other home insurance costs.
Alternatively, you might want to consider level term life insurance. You are not limited to the mortgage amount on your house and you can name anyone you would like as beneficiary. As an example, if you owe $100,000, you could take out a $500,000 standard term life policy which is more than enough to pay off the balance of your home loan and also leave your spouse with enough money to pay other expenses.
I know this may all sound a bit confusing, but it is really not that difficult to understand. As an independent agent, I can go over all of your options and answer all of your questions. Everyone has a different situation, and there is a policy that is best for each homeowner.