Ray of Financial Highway wrote a guest post on the topic of mortgage insurance today. He pointed out that these products have a huge shortcoming:
Mortgage Insurance versus Life Insurance
Mortgage Insurance versus Life Insurance
Thanks for the link CC! I think that was the article I was looking for!Ray of Financial Highway wrote a guest post on the topic of mortgage insurance today. He pointed out that these products have a huge shortcoming:
Mortgage Insurance versus Life Insurance
Research your options and you'll probably find that term insurance is your best bet. There shouldn't be too much variation between the various providers but like always, shop around and get quotes from various sources.Is there a life insurance that someone here recommends?
You have multiple replies suggesting term life insurance is preferable to mortgage insurance. To go back to your original question, my guess would be the mortgage specialist was advising that both spouses should be insured, however you do it. You have to consider how will the surviving spouse continue to pay for the mortgage, and if there are children, pay for their care & education.Hi all,
Not sure if it is worded correctly, but I believe my mortgage specialist mentioned something about spousal insurance? i.e in case of death of your spouse?
From my understanding, if you have this spousal insurance, and something does happen to your better half, your mortgage is covered?
Your thoughts? Is this something that is normally purchased or waived by most home buyers? Is there similar type of insurance plans that can be purchased elsewhere?
cheers,
It isn't your risk she was worried about, it was the bank's. With mortgage insurance the mortgagor is certain of being paid off; doesn't have to hire lawyers & realtors to foreclose on some poor widow and sell the property; doesn't face risk of bad publicity for doing so. (plus someone is making a profit on the insurance - probably the bank now that they are in the insurance business too)...
My banker thought I was crazy to expose myself to the risk. I told her no, I don't want it. I'll go buy my life insurance elsewhere.