Question: I just bought a house. What type of life insurance would be best to pay for the mortgage if I die? Term life or Whole life?
Answer: A term life insurance policy is generally he most cost-effective option for providing coverage to pay off a mortgage in the event of your death. This type of policy provides coverage for a specific period of time, such as 20 or 30 years, and pays a death benefit to your beneficiaries if you die within that time frame.
Whole life insurance, also known as permanent life insurance, is a type of policy that provides coverage for your entire life and includes an investment component. While whole life insurance can provide some financial protection for your beneficiaries, it is typically more expensive than term life insurance. It may not be the most cost officiant option for paying off a mortgage. When choosing a life insurance policy, it's essential to consider your financial goals and the needs of your beneficiaries. You may want to consider working with a financial advisor or insurance professional to determine the type of insurance best fits your needs.
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