Your Mortgage Is Still Due If You Die, So Here’s The Plan To Protect Your Loved Ones

April 22, 2019 by Dan Green

The word mortgage is derived a centuries-old French term meaning “death pledge” (mort gage) — an obligation to repay your home until your literal death.

Today, not even death excuses your obligation; payments are due each month until your loan’s paid off entirely, no excuses.

It’s why every home buyer should have a proper term life insurance policy. This way, in the event death, a cash payout can satisfy the mortgage debt and relieve the financial burden that would pass to an estate.

Term life insurance is insurance that makes cash payments to a specific person or entity when the person in the policy dies. It’s protection from money-related hardships that death can sometimes cause.

Policies aren’t expensive, either.

A home buyer in their 20s or 30s can reasonably expect to pay $25 per month for $500,000 worth of coverage, and costs increase to around $35 for a million-dollar policy.

Term life policies last twenty years and are low-cost for buyers under 40 because humans have a life expectancy exceeding seventy years. It’s unlikely that you’ll die while your policy’s in effect, so insurers can sell it cheaply.

Less than 2% of term life insurance policies ever pay out. But, when they do pay, the benefits are enormous — especially for owners of homes whose obligations continue past death.

Life insurance is for everyone. Don’t buy a house without it.

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