Comments on: Do You Need Mortgage Life Insurance Protection?

By: Panda Mike

Panda Mike — Wed, 19 May 2010 17:37:42 +0000

Banks will usually try to sell you mortgage insurance but you are often better off with a combination of a 10 years and 20 years term life insurance. It will be cheaper and you will get the full amount instead of having your mortgage paid off.

By: Bryan

Bryan — Mon, 17 May 2010 15:53:53 +0000

Neal – If the husband is turning 70 and the wife is older than 62, they could probably get a Reverse Mortgage with a lump-sum distribution to at least cover the balance on the existing mortgage, and, depending on the value of their house and her age, they can get a line of credit (HECM) which they can access in the event of an emergency or the death of the husband, OR receive monthly installments for the rest of their lives to supplement any potential loss of income. It’s worth investigating.

By: Bryan

Bryan — Mon, 17 May 2010 14:09:59 +0000

@Pilgrim – Has “S” looked into a Reverse Mortgage? At their age, and life stage, it makes little sense to continue paying a mortgage payment each month. I would suggest they seek the advice of a qualified Reverse Mortgage Adviser to see if that option would make sense for their situation.
@Odysseus – Nunzio is 100% correct “applying while your healthy and premiums are low before you think you actually need the coverage is one of the smartest things you can proactively do”.
Some day you will probably need it so why not apply when your young and healthy to keep your premiums low? Plus…there are some great insurance plans out there with incredible asset accumulation programs built in that can help you reach all your financial goals and provide a means for you to deal with all the things “life” will eventually confront you with.

By: Neal

Neal — Mon, 17 May 2010 14:03:12 +0000

Bryan……smart insights. YES….the reverse mortgage could be an option…depending on the situation. W/rates low and this couple young, I don’t imagine it working but it might if interest rates rise and once they are older.

Nunzio — As always, helpful and intelligent remarks. If you are pretty sure you w/need it…get it now. I bought my policies once I had kids because, even though I needed prior, I didn’t FEEL it like I did once my kids were here.

Odysseus — The insurance companies certainly have a vested interest in selling insurance. Having said that, I meet more people who don’t have enough coverage rather than meeting people who have too much. FWIW.

By: OdysseusToday

OdysseusToday — Mon, 17 May 2010 12:08:24 +0000

I am young, 25, and at the other end of this spectrum concerning insurance, but I had an awakening that the more I read and listen to podcast the more I realize most people do not understand the role of insurance.

Insurance is only useful as long as you do not have the resources to take care of the problem without that insurance. I have heard several people asking about life insurance in recent podcast and the advisers keep asking them if they have enough $$$ to cover all the expenses/debts if they die. If they say yes, or have no debts then the life insurance premiums can go somewhere else (retirement accounts, savings, etc).

I could have the information backwards, but it appeared to be what advisers were recommending as I understood it.

Great Post!