Term Life insurance is the least expensive type of life insurance available, but still provides excellent coverage. Term Life has become the most popular type of life insurance policy because of it’s flexibility and low cost.
Insurers charge a premium and when they receive that premium they use it to build up a fund. That fund then earns interest however the insurer incurs some costs not only on writing the business, selling the policies but also on administering the fund. In addition the fund must be sufficient to pay out claims (deaths).
Mortgage life insurance protects your home and your family by providing a lump sum to pay off your mortgage should you die while the policy is in force.
