Are you thinking about mortgage life insurance right now? Chances are good that you’ve seen some advertisements for it, and you’re curious as to how it could possibly improve your life. The truth is that you will need to think carefully about this type of policy because it has its advantages and disadvantages.
The proper term is actually “mortgage decreasing life assurance”, but most call it insurance because that’s what they’re used to. This is based on the event of death, which is technically something that will eventually happen — not if, but when. You need to think about how to protect your family in case something happens to you.
When you take out your mortgage, your lender will try to offer you their MDLA policies, but they tend to be much more expensive than what the market would provide. Here are a few more tips to make sure that you’re getting the best policy.
Make sure that they take your health into consideration. If you’re a non smoker that’s kept themselves in fairly good shape, then you’re going to be able to actually get a better rate than someone that’s done really nothing but make themselves sick for decades. If you’re in poor health, then you’re going to be paying a lot more on a health based policy.
You also want to make sure that you disclose absolutely everything that the insurance company is looking for. If you hold back anything, it could haunt your heirs after you pass away. That’s not something that you want to deal with if you can help with it.
You also want to make sure that you look at getting the policy written in trust, so that your heirs will not have to pay inheritance tax. This can take away from the benefit that you’re trying to give to your family. Inheritance taxes can definitely take away from all of the gains that you’re trying to make, even though a lot of people don’t think about it. Remember that you only have one shot at the very beginning of your policy to get it written in trust. This means that it bypasses the estate and goes directly to your beneficiaries.
Trying to figure out the best MDLA policy isn’t difficult, but you will need to make sure that you’re shopping around for the right broker. If you’re determined to use a broker for this, you’re going to need to make sure that you really are shopping around as much as possible before it’s too late. Why not get started today? You’ll truly be glad that you did!