I have home owners insurance but i think a need a product that pays off my loan in case of death and also provides for my child, pays my monthly mortgage if i become disabled whether short term or long term
2006-11-02 01:54:10 · 5 answers · asked by nwhm 2 in Business & Finance ➔ Insurance
Mortgage life and disability insurance should answer your needs. I'm actually surprised that your mortgage lender wouldn't have offered it to you when you got your mortgage! They make good money on this kind of insurance, and generally there is some kind of incentive for the loans officer to encourage you to purchase it.
An option to consider is that you may be able to get life insurance on your mortgage cheaper by buying a term life insurance policy separate from your mortgage. Every time your mortgage comes up for renegotiation, you can reduce the amount of insurance that you are buying, and save yourself some money. This is different than mortgage insurance for which the premiums stay the same and are based on the original amount of the mortgage. The disadvantage is that the money is paid to your estate and doesn't automatically go against your mortgage. However, you would have assets in your estate this way to pay your mortgage and could leave instructions for that to happen with your executor or legal counsel.
Life insurance obviously won't cover your mortgage in case of sickness or disability though. For this, you could consider a disability policy. This will allow you to be covered for more than just your mortgage -- it protects your income directly. In most cases, you can get a disability policy that will pay you 60% of your salary now. If you pay for it yourself, that 60% will be tax free (because you've paid for the policy with after tax dollars). In many cases, if this benefit is tax free, it will be sufficient for you to cover your regular expenses.
2006-11-02 04:40:32 · answer #1 · answered by MoniqueLise 3 · 0⤊ 0⤋
I know Lutheran Brotherhood has insurance to cover your needs.
2006-11-02 01:58:30 · answer #2 · answered by JAN 7 · 0⤊ 0⤋
you need life insurance - I use Amica - they do discounts for multi policy holders and are a great company -- I have dealt with them for almost 20 years and my parents longer than that...
2006-11-02 01:58:04 · answer #3 · answered by akelaamy 5 · 0⤊ 0⤋
my bank offered me this when I took out my mortgage - you could ask them?
hsbc bank
2006-11-02 01:56:56 · answer #4 · answered by sarah_roo03 4 · 0⤊ 0⤋
Your morgage company should be able to help you with that
2006-11-02 02:04:43 · answer #5 · answered by Ricky Lee 6 · 0⤊ 0⤋