Question

Your clients, a young married couple with two children, just purchased a new home and would...

Your clients, a young married couple with two children, just purchased a new home and would like to ensure that the mortgage will be paid in the event either of their deaths. Your recommendation is for them to purchase?

A.

First-to-die term life
B.

Second-to-die term life
C.

Family income policy
D.

Mortgage whole life
E.

All of the above
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Answer #1

Answer-

The correct Option is D. Mortgage whole life.

Mortgage life insurance is a typical mortgage, so in the event of any one's  death his/her spouse can pay off the outstanding mortgage. It is also called as decreasing term life insurance.

The amount decreases over the term of your policy, similar to the way a repayment mortgage decreases. The mortgage life insurance is cheaper than a level term policy.

When one buys a house the mortgage lender may try to sell the life cover along with it.

The other Options are incorrect. Options A,B and C are incorret as they are not related to mortagages.

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