I have a friend of mine who just recently purchased a home receiving all this information on Mortgage Life Insurance. She asked me about it and I had the craziest look on my face LOL. I thought to myself OK Mortgage life insurance is too expensive to start and become more costly as time goes on because premiums generally stay level, but the policy face amount (or death benefit) is reduced on the same schedule as the debt is reducing. So, in short, the cost per thousand of coverage starts out much too high (relative to other, benchmark products), and only gets worse over time.
I thought to myself now if she does die and the mortgage insurance pays off her home and debts what about leaving her children or husband with anything I mean there are other debts one can incur and this will not help them with those debts.
Now I know my carpet may not go wall to wall all the time but I told her she would be better off looking for life insurance with a broker and determine how much she will need I mean think about it if you buy a policy that covers your home and debts wouldn't that sound more sensible than just paying off your home? I dunno just something that makes you go hmmmm...
She stated that she gets mail all the time asking her to buy mortgage life insurance and the positive reasons to buy. Are there really a lot of positive reasons to buy?