Mortgage Life Insurance?

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Services for Real Estate Pros with Outreach Property Solutions

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?

  

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Rainer
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Dave Cheatham
INC Financial - Bartlett, IL

Do not buy Mortgage life Insurance as you are thinking.  She should have life insurance to cover the cost of her home.  If she is in good health get a level term policy to cover it.  Now as a Life agent I need to tell you that any good life agent will tell you to get 10 times your salary. 

With out talking to her or knowing her I would tell her not to be fooled by what people are going to want to sell her.  She needs to check into Life insurance.  Everyone should have it to protect her loved ones.

If done right she can do more than she might think with it too.  That takes an education.  Life Insurance is a great thing to buy.  There is a reason the rich people all have it.  And it is not just for the rich.  I sell it to everyday working people just like me.  If you have any questions you can ask.  I am more than happy to answer any question you might have, or your friend.

Sep 24, 2007 05:35 AM #1
Rainer
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MarQuis Rhodes
MarQuis Real Estate Group/Boise River Properties - Boise, ID
Wow, Great information Dave.  Good post Chriss.
Sep 24, 2007 05:36 AM #2
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Fred Griffin
Fred Griffin Real Estate - Tallahassee, FL
Licensed Florida Real Estate Broker

    We invite you back to ActiveRain in 2018!

Much has changed since you last posted to ActiveRain.  I encourage you to take another look at the website.  

  Best to you!

Mar 02, 2018 04:07 PM #3
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Rainer
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Chriss Thomas

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