Why Is It A Good Idea To Get More Life Insurance After Getting A New Mortgage? 
The need for life insurance for most people increases with debt . The fact that your question states that you have a new mortgage suggests you now have a new debt . If you or your spouse or partner were to die and that income is lost , would it be a burden to the other loved one to cover this new debt ? If the answer is yes , you need additional life insurance . If you just closed on the new house you will soon receive or be bombarded is probably a better way to describe it , with letters about mortgage life insurance . These letters will look as if they are being sent by your mortgage company , but chances are they are not . Life insurance companies pay mortgage lenders for their lists and their logos to create leads to sell decreasing mortgage insurance . As you pay off your mortgage through the years , the face amount or benefit to your loved ones decreases , because you owe less to the bank . If you purchase a guaranteed level term life insurance policy , then your loved ones get the difference not the insurance company . If you have a 30 year mortgage for $ 200,000 , purchase a $ 200,000 30 year level term policy to cover that debt for your loved ones . When you pay off the mortgge drop the insurance coverage . Never leave a loved one holding excess debt when you die . 