Securing a mortgage is often a significant financial commitment. However, many homeowners overlook the importance of protecting their investment in the event of unexpected circumstances. This is where a term life insurance policy comes into play. Offering financial security and peace of mind, term life insurance is specifically designed to provide coverage for a set period of time, therefore, it can align perfectly with your mortgage term.
Tailored Coverage for Your Protection
Term life insurance allows you to tailor your coverage to align precisely with your mortgage term. As mortgages typically range from ten to thirty years, you can select a corresponding term life insurance policy that ensures your coverage remains in force throughout the duration of your mortgage. This means it also serves to protect your loved ones from the financial burden of mortgage payments long after you’re gone.
Affordability and Cost-Effectiveness
Term life insurance is known for its affordability, making it an attractive option for many people seeking financial security. Premiums for a term life insurance policy are generally lower than those of a permanent life insurance policy. This is because it is pure insurance – it’s designed to provide specific coverage, for a specific reason, for a specific period of time, without an accumulation of cash value. With term life insurance, you can secure substantial coverage at a reasonable cost, allowing you to allocate your resources effectively.
Benefits Beyond Asset Protection
While protecting your assets is the primary focus, term life insurance offers additional benefits that extend beyond your commitments. Depending on the policy you choose, your loved ones may receive a lump sum payout to cover other financial obligations such as education or daily living expenses too. This versatility adds value and flexibility to your overall financial plan.
Additional Add-ons
While you may be content with a policy that solely covers your assets, it might also be a good idea to customize your policy by adding extra riders (a.k.a. benefits). These additional benefits can help you secure more coverage in the future by saving your insurability, as well as giving your loved ones a higher payout should your untimely death be the result of accidental circumstances.
Simplified and Streamlined Application Process
Applying for term life insurance is typically a straightforward and streamlined process. The first step is ensuring you’re accepting the policy that is most tailored to your commitments, then completing an application. Once completed, the insurance company will require you to obtain a medical exam that will accompany the application; if you’re applying for a term life policy with Freisenbruch, your medical exam will be performed by our healthcare provider at no additional cost to you. Finally, your application is sent off for underwriting and approval.
Once you have a term life insurance policy in place, you can rest assured that your family is protected in the event of unexpected circumstances. By aligning your assets with a term life insurance policy, you ensure that the financial obligation of a mortgage or other hefty financial commitments will not burden your loved ones after you’re gone. Furthermore, the policy can be customized for additional versatility and flexibility so that the lump sum payout can help with expenses not specifically earmarked in the policy. It’s an affordable option to protect your investments and your family when you no longer can
If you would like any further details, please contact Mahkai W. Outerbridge, Life Sales Agent at Freisenbruch
441 294 4618 | 441 534 0006 | mwouterbridge@fmgroup.bm
