When Is Term Life Insurance Better Than Paying Off a Mortgage?

Taking on a mortgage is an expensive undertaking, but it’s one that has its rewards. Owning a home gives people the opportunity to live out their dreams of having their own place to live, raise their family in a neighborhood that reflects their values, and live a lifestyle that could never be achieved in a condominium or apartment. Except the cost of homeownership isn’t cheap and having two incomes is better than one when it comes to making sure all of the bills get paid. In turn, that generates the thought of what might happen if one spouse passed away before the mortgage is paid off. One obvious solution is to get mortgage life insurance, but that may not be enough.

Mortgage life insurance is an excellent product that’s used to pay off the mortgage in the event that a spouse dies, but that’s all it is. It doesn’t cover anything other than the remaining balance on the mortgage. And if the family left behind is of school age, there won’t be any extra money for them to go to college. Nor does the spouse gain a benefit in the form of lost wages being covered to a degree. This is where term life insurance is far more beneficial in that it’s flexible, can be taken out in an amount higher than a mortgage, and provide money for those who survive.

Take the Health IQ quiz below to learn more about why term life insurance is a better option for paying off a mortgage when a spouse passes away.

About Health IQ

HealthIQ’s mission is to improve the health of the world. In pursuit of this mission, they’ve created over 2,000 Health IQ quizzes and worked with innovative insurance companies to create financial rewards for health conscious people. To date, Health IQ has helped thousand triathletes, vegans, runners, and other health conscious people secure billions in life insurance coverage, and they hope to expand to other financial rewards in the near future. Speak with a Health IQ agent to learn more about Health IQ’s life insurance product, which offers special rates for health conscious people.

 

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