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