What is the least expensive option to pay off a 30-year mortgage balance?

The least expensive option to pay off a 30-year mortgage balance would be decreasing term life insurance. This type of policy is specifically designed to provide a death benefit that diminishes over time, typically in alignment with a decreasing mortgage balance. Since the face amount of the policy decreases, the premiums tend to be lower compared to level-term policies.

When considering a mortgage, the financial obligation decreases as payments are made, and decreasing term life insurance effectively mirrors this reduction in debt. This makes it an economical choice for mortgage protection, as it allows policyholders to pay only for the coverage they need at each stage of the mortgage.

In contrast, convertible term life insurance allows for conversion to a permanent policy but does not directly correlate to the decreasing nature of a mortgage. Adjustable term life can present varying rates, depending on market factors, and may not offer consistent coverage without the decreasing benefit that matches a mortgage. Increasing term life involves rising premiums and benefits over time, which would not be cost-effective for a mortgage payoff strategy. Overall, decreasing term life provides a targeted and affordable solution aligned with the financial objective of eliminating mortgage debt.