Keep me logged in until I sign out. Several types of insurance contracts pay your home loan if you die or become disabled. This type of insurance establishes an annual premium cost for the life of your loan. In almost all cases, a term life insurance policy that can be used to pay off the loan in the event of your death is preferable to a mortgage insurance policy. Term life insurance is less expensive and offers better protection and more flexibility.
All insurance products are relatively complicated.
You may want to consult a financial professional or an attorney to check these policies before you buy one. Because temporary or permanent disability can threaten your ability to pay your home loan, you may also want to consider buying a disability policy or participating in any disability insurance offered by your employer. Disability insurance can add to your peace of mind and that of your lender. Again, however, credit disability insurance may not be your best choice. A buyer purchasing a new home from a builder may or may not work through an agent.