|
Is Mortgage Life Insurance a Good Buy?
By Charles Essmeier
Buying a house is one of the most expensive things most people will ever do. With the average home in the United States now costing more than $200,000, it will take a half a million dollars to buy it outright once the interest on the loan is taken into consideration and for most people, thirty years of hard work. But what if something happens to you during the life of your mortgage? What will happen to your family if you should die before the house is paid off? Will they have a place to live?
One solution to this scenario, called mortgage life insurance, is offered by most lending companies. This is an insurance policy that the buyer purchases along with the loan; the premium is added to the monthly house payment. Should the buyer die or become disabled, the home loan will be paid off.
This may sound like a good idea. Should you buy it?
That depends. The idea is certainly a good one; no one wants their family to become homeless in the event of an untimely death. On the other hand, such a policy is rather limited. It does one thing only - it pays off the mortgage. A better alternative might be a term life insurance policy, which would simply pay cash to a designated beneficiary. He or she could then use it to pay off the mortgage or they could use if for other needs. This might offer greater flexibility than would mortgage insurance.
Term life insurance might be cheaper, as well. This will depend on the age and health of the applicant. For someone under 40 in good health, term insurance might be a great deal cheaper. For someone older, someone with poor health, or someone who smokes, the mortgage insurance might be a better deal, as premiums for life insurance can increase dramatically under those circumstances. Most people who wish to protect their assets would probably be best served by a term life insurance policy, anyone who has any questions about it should probably consult with both their insurance agent and a representative from their mortgage company. About the Author ©Copyright 2005 by Retro Marketing. Charles Essmeier is the owner of Retro Marketing, a firm devoted to informational Websites, including HomeEquityHelp.net, a site devoted to information regarding mortgages and home equity loans and End-Your-Debt.com, a site devoted to establishing credit, debt consolidation and credit counseling.
Article Source: http://www.simplysearch4it.com/article/23200.html
If you wish to add the above article to your website or newsletters then please include the "Article Source: http://www.simplysearch4it.com/article/23200.html" as shown above and make it hyperlinked. |
Some other articles by Charles Essmeier | Deed Theft Criminals Get More Aggressive at Stealing Your Home Deed theft is an increasingly popular crime in the real estate industry. It usually works like this: A company will post signs around town offering to "help" ...
Will Online Mortgage Lenders Replace Traditional Banks? The Internet has changed our lives in more ways than we can imagine. The Web provides a convenient, fast, comprehensive source of information that we have very quickly embraced ...
Home Equity Just Part of a Good Rainy Day Plan In the last five years, values of homes throughout the United States have increased dramatically. With that, the American public has resorted to an unprecedented amount ...
Discount Points May Be Wise When Purchasing a Home There are many expenses one must pay when closing on a mortgage. Some of these include taxes, a down payment, loan origination fees, and miscellaneous fees for couriers, copying or other office expenses. No one likes ...
Mortgage Tips for First Time Buyers A home is the single most expensive thing most people will ever purchase. In addition, paying off a home loan can take as long as forty years and will involve paying an amount ...
Mortgage Paid Off Sooner With Just a Little Extra Cash Buying a house is the most expensive thing most people will ever do. Almost 70% of Americans now own their own homes, and that is an all time high. But the commitment to buying ...
|
|
| |
|