Credit Life Insurance Quotes or Why You Might Not Want Mortgage Term Life Insurance

Credit Life Insurance Quotes or Why You Might Not Want Mortgage Term Life Insurance

Credit life insurance, credit life insurance quotes, and mortgage insurance do one thing. They pay off the balance of your home mortgage if you die.

The benefit is obvious, your loved ones will now have a paid for home and will not need to worry about the house payment. Sounds like a good thing right?

Not so fast! Here are a few things ill-considered about mortgage term life insurance and credit life products;

1. Expensive: these types of policies are quite a bit pricier than standard life insurance products. A better value is to add the amount of your mortgage to your existing life insurance needs.

2. Descending face: they only pay off the balance of the loan, so every year the face amount is obviously less. There are a few level face products like this but they are rare.

3. Only pays the lender: none of the money will be given to your loved ones.

4. Your loved ones may not wish to keep the house: maybe they would prefer to just make the payments out of your life insurance policy proceeds until the house would sell.

Speculating about what our loved ones will do on our death can often lead to frustration. Just give them a typical life insurance product that will offer cash on death. Keep it simple.

The most glaring fault with these policies though is their cost versus a more traditional life insurance policy. You could buy two or three policies for the same price and face value as credit life insurance.


In my opinion; credit life insurance quotes are not the first place you should stop when searching for a new life insurance policy.

A standard term life insurance policy will fit your needs much better, be more economical, and offer your loved ones more flexibility if you policy ever needs to be used.

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