Comments on: Mortgage Life Insurance Is A Rip-Off

By: Amanda

Amanda — Sat, 02 Jul 2011 15:32:32 +0000

I’m so glad I read this because I was actually thinking about purchasing mortgage insurance because it sounded great. Especially the part where it said that if no claims were made against the insurance by the time the loan was paid off, all premiums paid on the policy were refunded back to the insured. I admit it sounded to good to be true.

By: Kyle

Kyle — Sat, 25 Jun 2011 20:15:06 +0000

But the family isn’t benefiting from having the insurance. That’s the entire point. And I’ve never met anybody who couldn’t qualify for term insurance that would be a better deal than mortgage life insurance. Maybe one exists out there, somewhere. But they are rare. For most people, the point is moot.

By: Chandler

Chandler — Sat, 25 Jun 2011 13:26:44 +0000

Term insurance from the beginning makes much more sense. The assumption that everyone is making is that you qualify for term insurance. Underwriting (the qualification process to determine that your healthy enough to be insured) can be less when your only looking to insure the amount of a mortgage.

By the way, the argument about the insurance actually being for the bank is silly. It’s silly because the family is the one benefiting for having the insurance. They are the ones living in the house, not the bank.

By: Kyle

Kyle — Thu, 22 Jul 2010 12:32:31 +0000

Why not just get term life from the beginning? Buying mortgage life insurance just for the first few years makes no sense and violates the mathematical principles of insurance.

By: Mike

Mike — Thu, 22 Jul 2010 00:07:53 +0000

OK You can cancel insurance at any time. So if you can get the mortgage life insurance cheaper it may be the right thing for a few years. You keep it until either party in the family would be able to pay off the house and then you cancel it / switch over to a regular life insurance.

I think the correct thing for many is to get a mortgage life insurance for the first 4-5 years of being in the house. Once they are starting to make a dent in the loan move over to a regular life insurance that at a minimum covers the mortgage.

The problem with the article is that it assumes that you make no further changes to the policy for the next 30 years. People that live life like that are already loosing tons of money elsewhere….

By: Andrea Holmes

Andrea Holmes — Tue, 29 Jun 2010 04:23:22 +0000

Mortgage protection life insurance is simply insurance that is meant to pay off your mortgage in case of your death while the mortgage is not fully paid.

By: Allie

Allie — Tue, 17 Nov 2009 17:04:08 +0000

I agree that if you are a healthy individual mortgage life insurance isn’t a good idea. When you can get a good life insurance policy that covers you. But, for people who have disablilities or pre existing illnesses when they purchase a home mortgage life insurance is pretty much the only choice, as most life insurance companies will only cover accidental death. If you know of any alternatives for the disabled please email me.

By: Mike's Mortgage Guide

Mike's Mortgage Guide — Mon, 07 Sep 2009 16:22:24 +0000

I agree. Don’t waste your hard earned money on lousy insurance. Get the Life insurance instead.

By: Adam

Adam — Sun, 23 Aug 2009 23:32:38 +0000

When I used to sell life insurance, I paid a company to send me individuals that were in the market for “mortgage” life insurance. I actually ended up selling them only term insurance at low rates. I think it really matters who gets their hands on that paper that you send back.

By: Jag's software guide

Jag's software guide — Mon, 17 Aug 2009 10:00:07 +0000

Thank buddy, but I need these article to show with some examples in it.