Read this tip to make your life smarter, better, faster and wiser. LifeTips is the place to go when you need to know about The Basics of Mortgage Life Insurance and other Mortgage Protection Insurance topics.
The purpose of Mortgage Life Insurance Protection is to protect your family from losing assets after your death. Because there are many different whole life policies, offering attributes like cash values invested in stocks, many people have confused investment opportunities with protection and preservation efforts.
While you can spend additional Mortgage Life Insurance Protection premium dollars on a policy that accumulates cash values that are invested in technology stocks, you run the risk of losing all those accumulated funds if you do. With a term Mortgage Life Insurance Protection policy, you can limit the amount of premium dollars you spend and not confuse investing with protection and preservation. Then, you can also afford to invest additional monies in tax-qualified retirement accounts that offer conservative investment options, or in non tax-qualified accounts that offer tax benefits when an investment loss is incurred.
Remember, Mortgage Life Insurance Protection is an investment in asset preservation and income replacement, not in stock market chances.