What are the pros & cons of paying premiums for mortgage protection?
Why, and why not? The pros and cons of mortgage term life are simply stated. On the plus side, you are paying (relatively) little for a lot of potential mortgage protection, which could be useful if your heirs are in no financial shape to make mortgage payments. On the negative side, term insurance is term insurance. If you live past the term of your mortgage term life policy, no benefit will be forthcoming for all those premiums. The premiums paid are commonly lumped into the mortgage, which means that finance charges are being tacked onto them.
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1 – bankrate.com/finance/insurance/need-buy-mortgage-life-insurance.aspx [3/11/13]
2 – statefarm.com/insurance/life/term-life/mortgage-life [9/10/14]
3 – investopedia.com/articles/pf/08/return-of-premium.asp [9/10/14]