For new homebuyers, protecting your mortgage is a very important issue to consider. If something should happen to you or your spouse, that doesn't relieve you of your obligation on your mortgage.

Term Life Insurance is far and away the cheapest and most logical way to achieve this, yet many homebuyers unknowingly purchase traditional mortgage insurance. This can be a costly mistake.

Traditional mortgage insurance is typical sold by the mortgage company and is essentially an insurance policy which will pay off the balance of the mortgage should something happen to one of the homeowners. There are many disadvantages to this type of policy:

• This policy is a decreasing term policy, which means the amount of benefit is decreasing as the value of your mortgage goes down. This, despite the fact that your premiums remain level, so the cost per thousand actually increases over time.
• The mortgage company is the beneficiary of this policy, and will receive the payoff directly. Many financial advisors would oppose this strategy as the tax deduction is then eliminated.
• The policy is tied to the house which means if you sell the house, you lose the policy. If you purchase a new one, your starting all over at a higher age, which means higher premiums.

It wasn't until recently that term insurance products started offering long term guarantees, such as 10, 20, and now even 30 year level premiums. As a result, it became the perfect product to match a 30 year term mortgage, and a less expensive alternative to mortgage protection insurance.

Term insurance offers solutions to each of the above problems presented by mortgage insurance:

• Both the premium and face amount remain level for the entire policy period you choose (10, 20, or 30 years).
• You are the owner of the policy, not the mortgage company and can designate any beneficiary you choose. It may make much more sense financially for a surviving spouse to invest the lump sum death benefit and continue to pay the mortgage from the interest, while maintaining the valuable tax deduction.
• Since you are the owner of the policy and it is NOT tied to the house, you take it with you wherever you go, and it remains guaranteed for the entire policy term.

Click here to run a instant term rate comparison of all the top companies for your mortgage protection insurance!!!