Should I Buy Mortgage Life Insurance To Protect My Family?

When buying a home many people rightly consider purchasing life insurance.  The problem with buying life insurance through your mortgage company is that it will cost you much more than purchasing a simple term life insurance policy.  This question has come up for years, the idea of buying an insurance policy associated with a car loan, a mortgage, a credit card, or other installment agreement.  This is a huge profit center for financial institutions and many of them put a great deal of pressure on consumers to take this coverage.  Rather than having multiple insurance policies, and over-paying for them, my suggestion would be to purchase one term life insurance policy that covers your total life insurance needs (including the need for income replacement). 

In today’s post I will not get into how to determine life insurance needs and appropriate amounts, but suffice it to say that it is far better to approach your life insurance needs through a single term life policy than individual credit life type programs.  A simple rule we have been teaching for years is the principle of having 8 to 10 times your income in life insurance coverage.  For links to shop for life insurance click here.  Agree or disagree, click on comments below.  Do you have a question you would like answered in our daily Q and A?  Send it to jim@christianmoney.com

My main website is www.christianmoney.com

James L. Paris

 

 

Comments

[Terri]

This is really good to hear again. I attended your seminar in Stockton a few years ago and I need to be reminded of this information. I was just about to go online and start looking at term life insurance quotes.

[Hadley]

Yes, simple term life insurance may be more affordable and provide more protection to allow for funds to not only pay off your mortgage, but provide money to your family for other expenses like food, utilities and living expenses.

Mortgage life insurance is available online in the form of level term life insurance that can provide you with level rates and coverage amounts that remain the same for the entire 10, 15, 20 or 30 year term of your policy.

Learn more about Mortgage Term Life Insurance online.