Everything you need to know about insurance basics, like coverage types, limits, cost and more.
Mortgage Protection through Life Insurance: How Life Insurance Can Help Your Loved Ones Keep Their Home
A life insurance policy is built to help provide financial protection to your family if you were to pass away. But have you considered factoring your mortgage for your family’s home into the coverage amount you may need? A life insurance policy could help keep your loved ones on their feet if you were to pass away, by keeping your home in the family and helping make sure they have a comfortable place to live and thrive.
Life Insurance and Your Mortgage
A life insurance policy can help pay off your home’s mortgage if you were to pass away. It’s one of many ways that life insurance can help protect your loved ones and their financial future.
One of the best ways to factor your mortgage into your life insurance need is to talk with your insurance agent. They can work with you to determine the policy and coverage that can best fit your need and help your family stay current on mortgage payments if you were to pass away.
Life Insurance Options for Mortgage Protection
Instead of a one-size-fits-all life insurance policy, American Family Life Insurance Company offers policies that can be designed specifically to meet your family’s needs. Here are some of your options:
Term life insurance policies
A term life insurance policy is active for a specific amount of time and typically offers a larger amount of coverage at a lower price than a permanent policy. This type of policy doesn’t accumulate cash value and only pays out if the insured passes away while the policy is in effect.
If your specific goal is to make sure your family will be able to pay off your mortgage if you pass away, a term life insurance policy might be for you. And don’t worry — even if you change your mind down the road and want to convert your term policy into a permanent policy, like a whole life policy such as DreamSecure Whole Life Insurance, you may be able to do that (subject to policy provisions). We know your life insurance needs can change over time, and we’re always here to help you meet them.
Whole life insurance policies
A whole life insurance policy is just what it sounds like. Rather than only covering a set number of years, it can cover you for your entire life. It also has living benefits like cash value accumulation.
American Family Life Insurance Company offers different life insurance policies. Talk to your agent about customizing a policy or a combination of policies today and getting the peace of mind you deserve.
Flexible life insurance policies
If you value flexibility, flexible life insurance makes sense. This type of life insurance gives you the flexibility to adjust your policy at any time. A flexible life insurance policy also allows you to build cash value.
Review Your Life Insurance Coverage
If you have a life insurance policy already and think you’re all set, consider this — if you’re not in the exact same family, employment, or living situation that you were in when you got your policy, your needs may have changed. Schedule a personal insurance review with your agent on a regular basis and they’ll help you perform a needs analysis. Your agent is a great resource to answer your questions. They may also be able to help you find gaps in your life insurance coverage or new ways to save on your other insurance policies.*
Frequently Asked Mortgage and Life Insurance Questions
Is life insurance important if I have a mortgage?
Yes. A life insurance beneficiary can choose to use the death benefit for anything. It’s a great way to help safeguard the financial future of your family if you were to pass away.
How can life insurance be used for a mortgage?
For many, it may take many years to pay off a home mortgage. Life insurance is one way of aiding your family in paying off a mortgage if you were to pass away before the mortgage is completely repaid.
Is life insurance mandatory?
No. Life insurance is not mandatory, but it can be an essential part of helping make sure your loved ones are financially protected. Life insurance proceeds can be used to help pay off a mortgage, but it is not the same as mortgage insurance that you might be required to have as a condition of a loan.
Help Financially Protect Those Who Matter Most Today
Your home is worth protecting — that’s why you have homeowners insurance in the first place. But life insurance can help make sure your house stays in your family by providing a death benefit that can be used to pay down a mortgage, or make important purchases if you were to pass away. Get in touch with your American Family Insurance agent to get the life insurance policy that best fits your needs.
* Discounts may vary by state and company underwriting the auto or homeowners policy. Discounts may not apply to all coverages on an auto or homeowners policy. Discounts do not apply to the life policy.
This is a brief description of coverages and is subject to policy and/or rider terms and conditions which may vary by state. Fixed and guaranteed premiums are statements about the policy as determined at issue, and any changes made to a policy may affect the premium and are subject to our underwriting rules. The words lifetime, lifelong and permanent are subject to policy terms and conditions. DreamSecure Whole Life Insurance policies mature at age 121. Please check with an American Family agent for details on coverages and restrictions.
Policy Forms: ICC18-33 (10), ICC18-33 (15), ICC18-34 (20), ICC18-35 (30), L-33 (10)(ND), L-33 (15)(ND), L-34 (20)(ND), L-35 (30)(ND), L-33 (10)(SD), L-33 (15)(SD), L-34 (20)(SD), L-35 (30)(SD), ICC18-36 (10), ICC18-36 (15), ICC18-36 (20), ICC18-36 (30), L-36 (10)(ND), L-36 (15)(ND), L-36 (20)(ND), L-36 (30)(ND), L-36 (10)(SD), L-36 (15)(SD), L-36 (20)(SD), L-36 (30)(SD), ICC17-225 WL, L-225 (ND) WL, L-225 WL, ICC17-227 WL, L-227 (ND) WL, L-227 WL, ICC17-223 WL, L-223 (ND) WL, L-223 WL, ICC17-224 WL, L-224 (ND) WL, L-224 WL, ICC17-228 WL, L-228 (ND) WL, L-228 WL, ICC21, L141, MS 01 22, L141, ND 02 22, L141, SD 02 22