Does PMI help your spouse with mortgage payments in case you die?

Question

This is the scenario. A family buys a house, pays PMI for 2 years, the husband dies, the wife cannot afforf the mortgage, does PMI help?

Answer 1

No, the insurance that helps the widow with the mortgage is called Mortgage Protection Life Insurance. It will pay off the mortgage in the event that the insured (you) dies. Some people think it’s better to take out term insurance for the same amount as the mortgage. This makes some sense, but you must remember that you will leave a grieving family that may not make the best decisions with a huge amount of money paid in a death benefit. In other words, they may not pay off the mortgage, but rather may try investing in something or paying for something else. Unfortunately, unethical people will may try to profit from the situation. With Mortgage Protection Life Insurance, this can’t happen. The mortgage is paid off, period. Your family will at least have a roof over its head.

Answer 2

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RE:
Does PMI help your spouse with mortgage payments in case you die?
This is the scenario. A family buys a house, pays PMI for 2 years, the husband dies, the wife cannot afforf the mortgage, does PMI help?

Answer 3

You can't get PMI waived. The only way not to have PMI added to your Mortgage is to put 20% down on the home. You can also get PMI removed once you pay down the principal of the mortgage to a point where there is 20% equity.

Answer 4

PMI is strictly for the lender's benefit. Try not to be stuck paying it.

You will want to get a regular term life insurance policy. Any death benefits should cover the following:

D -- Any debts you have, not including the cost of the house
I - Income replacement, if either the husband or the wife dies. Both should be covered, even if the wife does not work.
M - Cost of paying off the mortgage.
E - Education costs for any children involved.

Do not get a cash value policy, whole life, variable universal life, or any of these. Buy term and invest the difference.

For more on this, read up in "Personal Finance for Dummies."

Answer 5

PMI guarantees that the lender will get paid if the borrower defaults and the house does not sell for enough to pay off the mortgage. This doesn't help the widow.

Answer 6

NOPE PMI cover mortgage default an save the banks loss.

You need term life 10- 15 times ur annual income.
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Answer 7

No, it does not. PMI is put in place to protect the lender in the event of default. You need to investigate mortgage life insurance. This type of policy is available to pay off the mortgage in the event of the death of the mortgage holder.

Answer 8

PMI is strickly for the benefit of the lender. It only pays if the borrower defaults.