- Whole Life Policy: Purchase a whole life insurance policy to provide long-term coverage that suits your needs. This policy offers lifelong protection and builds cash value over time.
- Term Policy: Obtain a term life insurance policy to cover the balance of your mortgage during the initial high-balance period (10 to 15 years). This policy ensures that your mortgage is covered when the amount owed is at its peak.
- Comprehensive Coverage: The term policy is designed to last long enough and provide a sufficient benefit to ensure your family can pay off the mortgage if something happens to you.
- Flexible Use of Benefits: Your family can use the death benefit at their discretion. They can choose to pay off the mortgage in full, continue making payments, or allocate the funds for other needs.
This combination approach offers both short-term and long-term financial protection, ensuring your family’s home remains secure.