Mortgage Life Insurance Calculator
Buying a home is easily the largest financial transactions that most consumers will make in their lifetimes, and it carries a pretty heavy burden for those who are taking anywhere from two to three decades to repay their mortgage balance to their lender. This balance, which easily soars into the hundreds of thousands of dollars, is a significant financial liability. If left uninsured and unprotected, a mortgage can also amount to a significant financial headache for any loved ones who survive a homeowner whose mortgage has outlived them. For this reason alone, mortgage life insurance is a key financial tool that most new homeowners should pursue immediately after the deal closes.
Mortgage life insurance is an effective way to stem the financial tide that could await loved ones after a homeowner’s untimely passing. This product effectively insures a mortgage against death and other unforeseen events, allowing for the full repayment of the outstanding balance if the homeowner passes away. While it might sound like a no-brainer in terms of protecting a family’s financial future, it can result in a significant financial burden for homeowners over the course of their mortgage’s life. Homeowners would be well advised to consider multiple options, companies, and insurance amounts, before deciding on any given product.
A Mortgage Life Insurance Calculator: The Path to a Great Deal
Luckily, the Internet has made it easier than ever to determine just how much mortgage life insurance is required for any given consumer. While pursuing an insurance policy, and a price quote, once required a licensed life insurance agent, the process can now largely be completed online by using a series of intuitive calculators and comparison tools.
Foremost among these is the mortgage life insurance calculator. This simple calculator takes into account all of the various pieces of information that determine the average insurance policy’s cost. Consumers looking for an accurate estimation of just how much coverage they will require should be prepared to fill in the form as completely as possible. Typically, that requires the following key pieces of information about the homeowners:
- The age and gender of the homeowner
- Whether or not the homeowner currently smokes cigarettes
- The total value of the home and any land that accompanies it
- The total value of the mortgage balance remaining for payment
- The length of the insurance policy being pursued (typically the same length as the mortgage term)
- The zip code of the home’s location
When this information has been sufficiently entered into the calculator form, consumers will be directed to the submission button. A few seconds later, after some behind-the-scenes calculations, the form will print out the average annual cost of an insurance policy for the homeowner. This insurance policy takes into account the overall value of the land and mortgage debt, as well as the health of the homeowner in terms of age and healthy habits.
Once this amount has been printed out, it will be far easier to conduct a comparison-shopping process between companies that offer mortgage life insurance. With a good idea of just how much a policy will cost, it’s easier to see which companies are offering a great deal and which policies are simply overpriced.
Compare and Contrast: The Key to an Affordable Insurance Policy
As with any big financial decision, homeowners owe it to themselves to participate in an extensive comparison shopping process before deciding on a single life insurance company or a specific mortgage life insurance product. As well as compare mortgage insurance to term life insurance. Just a few years ago, this was a pretty tall order. Without effective online tools, consumers had to actually call up every major life insurance company and wait to speak with an agent who would calculate a policy’s cost on their behalf. The hassle of this process caused many consumers to shy away from fully evaluating their options, and led to many people overpaying for insurance.
In the 21st century, such overpayment is no longer required, and it’s not nearly as common. That’s because all of the major players in the life insurance industry have moved their operations online in a big way. And, with open access to their policies and discount information, it’s possible to use third-party comparison tools to get a better idea of the price differences between each company’s policies.
When shopping for mortgage life insurance, comparing and contrasting policies is the best way to get a great product for less money each year. A common quote form will reduce the length of time this process takes, requiring just one set of data in order to return insurance policy quotes from all of the biggest names in the industry.
Before deciding on a life insurance company or policy, be sure to use both the life insurance calculator, and the comparison quote form, to get an accurate idea of projected costs, policy differences, and savings. It will certainly pay off over the lifespan of a typical mortgage.