Variable Mortgage Protection vs. Term Mortgage Protection

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What is the difference between variable and term insurance coverage?

Variable Mortgage Protection vs. Term Mortgage Protection

When starting to think about final expenses, many people wonder, "What Is Mortgage Insurance?" This is common, as mortgage insurance is often confused with a whole life insurance policy. There are many different Mortgage Protection Coverages for you to choose from, but not all of them are cost-effective for your family's budget. One type of coverage you may be hearing a lot about is variable insurance coverage.

Variable Mortgage Protection Coverages vs. Term Mortgage Protection Coverages

  • Variable Mortgage Protection Coverages: Variable insurance policies are whole life policies that require large premiums. Some of the premiums go toward the cost of insurance in your policy, and some of the premiums go toward the accumulation of cash values that are invested in the stock market and can either gain or lose money. As if the risks of fluctuation and loss of cash values weren't enough, another portion of your premium goes toward the high expenses that variable insurance policies have.
  • Term Mortgage Protection Coverages: Term Mortgage Protection Coverages are inexpensive policies with very low overhead. Most of the premiums you pay go right toward your cost of insurance, and that results in an affordable, sustainable premium payment. There is no cash value accumulation (and no additional premium to pay that is diverted toward that), no risk of losing your “investment,” and no worries about stock market performance.

   

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