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9/22/2017 12:11:25 AM
Posted: 8/29/2005 12:10:07 PM EDT
I just refinanced my house and took a lot of cash out for remodeling. I'm 43, my health is fair, my employment is stable.

I have received an avalanche of offers for mortgage insurance that will pay off the balance in the event of my death, that will pay up to six months in the event of the loss of my job, that will pay X amount in the event of my disability.

A) Is mortgage insurance a good idea, and if so,

B) Who is a reputable company to deal with?
Link Posted: 8/29/2005 12:21:12 PM EDT
Get a good whole life policy instead. You'll benefit from it in the long run, cash value etc.

If you have no heirs i.e. wife & kids, then who cares.
Link Posted: 8/29/2005 12:22:39 PM EDT

I'm no expert, but bearing that in mind, NO.

Figure the mortgage payoff into your life insurance policies. If you owe 150,000, take out a nice term life policy for at least that much (in addition to whatever you currently have for LI). Then not only does it pay off the house, but your heirs get whatever is left over.

Sounds like a real estate version of the "Accidental Death" life insurance I see advertised. My wife's financial needs aren't going to be all that much different whether I die from a car accident or a brain aneurism, but the AD life only pays out for the accident. No thanks...I'd rather have a standard policy.

Jim
Link Posted: 8/29/2005 12:27:30 PM EDT

Originally Posted By KS_Physicist:
I'm no expert, but bearing that in mind, NO.

Figure the mortgage payoff into your life insurance policies. If you owe 150,000, take out a nice term life policy for at least that much (in addition to whatever you currently have for LI). Then not only does it pay off the house, but your heirs get whatever is left over.

Sounds like a real estate version of the "Accidental Death" life insurance I see advertised. My wife's financial needs aren't going to be all that much different whether I die from a car accident or a brain aneurism, but the AD life only pays out for the accident. No thanks...I'd rather have a standard policy.

Jim



+ 1. Get a good term policy for as much as you can afford that will cover you for the length of the loan. It will be much cheaper than going with a company that bought your name from a mass marketing company. Call your insurance agent, they will be able to hook you up.
Link Posted: 8/29/2005 12:29:51 PM EDT
[Last Edit: 8/29/2005 12:31:53 PM EDT by jcncc]
Term policy never ever whole life. Check the price difference if you were to invest the saving between the two you would be alot better off with term.
Link Posted: 8/29/2005 12:36:38 PM EDT
I'm a mortgage broker and I'd recommend the same thing. Get a life insurance policy, whether it's whole or term- it's a better deal than Credit Life.
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