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Mortgage Life Insurance California

Mortgage life insurance is one of the most important life insurance policies a person who owns a home can buy. Since the ownership of this home is probably the largest investment for most people it is imperative that your investment be protected in the event.

Local Companies

Mission Hills Mortgage Bankers
(559) 228-6678
1312 E. Shaw Ave #101
Fresno, CA

Empire Home Loan
916-783-8080
151 N Sunrise Ave
Sacramento, CA

Countrywide Home Loans
(661) 397-2535
5101 Ming Ave
Bakersfield, CA

First Alliance Mortgage
(619) 426-2725
660 Bay Blvd
Chula Vista, CA

Nohemia Mortgage Relief and Co
(619) 781-8178
629 3rd Ave
Chula Vista, CA

Community Financial
800-785-4952
1099 E. Champlain Ave. Suite A#276
Fresno, CA

The Mortgage Mentors
(916) 526-2896
2377 Gold Meadow Way
Gold River, CA

California Mortgage Loan
800-785-4952
155 E. Shaw Ave. Suite 303
Fresno, CA

Ricoh Business Systems
707-628-5213
1001 Galaxy Way, Ste. 102
Concord, CA

U.S. Mortgage Center
559-222-3100
1241 East Shaw Avenue
Fresno, CA

Mortgage Life Insurance

What really is mortgage life insurance. Mortgage life insurance pays off the balance owed to the bank or mortgage company in case of your premature death. Let us assume you have a $100,000 25 year mortgage on your house. Let us also assume that after 5 years you have a balance owed of $95,000. Incidentally that figure is not as impractical as it sounds. Your principal decreases very slowly in the early years. Back to our discussion; You now believe you should take out some mortgage life insurance because you now have a new baby. What you need is a 20 year decreasing term policy which would usually be sufficient if you should die anywhere within the mortgage period. That is what mortgage life insurance is all about.

Some people add the waiver of premium benefit in case they should become disabled for at least 6 months the life insurance company will pay the premium for them. As an alternative to the decreasing term policy some policy owners use a 20 year term policy. If that person should die when there is only $50,000 owed for example, they have a little extra to put in the pockets of the beneficiary. $50,000 to the bank and the other $50,000 to the beneficiary. There is another alternative if you have some cash to play with.

Mortgage Redemption And Cancellation Insurance

Here is how this works. Let us use the above situation as an example. You are at the 5 year point just like in the mortgage life insurance example. What you do is buy a whole life or variable life insurance policy for $95,000, which is the amount owed on the mortgage. You are putting out a lot more premium but if this works right you will be happy about your decision. If you die before the mortgage is paid off the insurance policy will pay it off. Remember your whole life or variable life policy accumulates cash value. There are no guarantees, but at some time between the 5 year point and the 25 year point the cash value of your policy will be equal to the amount owed on the mortgage. You can cash out the policy or take a loan on it and pay off the balance of the mortgage. You would have redeemed your mortgage. You now own your house free and clear. Now is that not a great idea?

Click the link below to learn more about the varying uses of life insurance.

About the Author:

Donald Lusan

For more than 40 years Donald has been known for his extensive knowledge of the life insurance business. He has represented some of the largest and best life insurance companies in the United States as well as Canada. His advice is invaluable. Donald's website is: http://www.lifeinsurancehub.net

Article Source: thePhantomWriters Article Submission Service

Featured Local Company

Mission Hills Mortgage Bankers

(559) 228-6678
1312 E. Shaw Ave #101
Fresno, CA

Read more about Mortgage Life Insurance

- Homeowner Assistance Program California

(NC)—When life delivers an unexpected blow – like a serious illness, a marital separation or loss of employment – it can be difficult to stay on track. Sometimes, it can even put your ability to make your mortgage payments at serious risk. This scenario shouldn't mean that your home, and everything you've worked so hard to achieve, be in jeopardy.

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Q: I've saved $20,000 to put toward the purchase of a home. The home I'm interested in buying, however, costs $200,000 and I've been told that unless I can come up with a larger down payment, I'll need to take out private mortgage insurance. What is this and how does it work?

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Advertising	Family	Home Services	Real Estate Resources
Business Services	Fashion	Industrial Goods & Services	Retail & Consumer Services
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Cars	Food & Beverage	Internet	Technology
Computer Hardware	Franchise	Legal	Telecommunications
Construction	Health	Miscellaneous	Trade Shows
Education	Holidays	Nightlife	Travel
Entertainment	Home Appliances	Online Database	Weddings
Environmental	Home Electronics	Pets	World History