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Your Mortgage Protection Insurance Premium can be a big help in deciding what kind of death benefit your policy has. You may intend to have a death benefit that pays off your mortgage and all other debt, provides college tuition for all your children, replaces your salary for ten years, and provides a small pool of money for your spouse to retire with. However, all those intentions fly right out the window if they create a death benefit that is so large you cannot afford the Mortgage Protection Insurance Premium.
That's why it's important to consider your ultimate goal in terms of a death benefit and to prioritize all the categories within that ultimate goal. That way, if you can't afford to do everything you want to do with your death benefit, you know exactly which items to cut. This will make the process of applying for insurance much smoother and will ensure that your family's top financial priorities are covered.
|Jennifer Mathes, Ph.D.|