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 Posted: Fri Nov 20, 2009 5:49 pm Post subject: Life Insurance and Mortgage |
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Homeowner should also consider that their home is an investment and valuable asset. Thus, when you are considering life insurance one of the top questions should be how much coverage would I need? The answer lies between mortgage payment and expectancy of life. Therefore, you want a policy that will cover you for the term of life and for the term of your mortgage payments.
Life insurance is a demand. If you don’t have it and your family is obligated to pay for your funeral expenses, then most families are often out of luck. Failure to take out life insurance is not only causing stress to your immediate family, but other families since daughters and sons do marry. Therefore, you are extending the stress to other families when you fail to seek out life insurance. Furthermore, if you own a home you are expecting someone else in the family to payoff the home if you should die, without insurance coverage. Thus, if the family member doesn’t have money then the home is put on the market for sell. As you can see life insurance is a big decision. |
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Englewood
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| Posted: Sun Nov 22, 2009 9:51 pm Post subject: |
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Life insurance is also one of the most affordable insurance products in it's basic state. Very low premiums can net very high levels of cover. Quotes are also pretty easy to get but can vary from state to state quite a lot so it's important to make sure any quote you get, especially online, is based on your state.
When considering cover levels, I believe you need to consider more than just your funeral costs and any debts/mortgages you may have:
Do you have children that you want to put through college?
What impact will the loss of your income have on your family? Do you want to ensure that your spouse/childrenare provided for financially?
Does your family have ongoing costs that you need to provide for? Children with special needs or mediacal conditions for example.
Once you're gone, your're gone and your income goes with you - good life insurance arrangements can substantially cushion yoru family form the financial impacts of your passing.
As someone who has been recently bereaved I can say from experience that the last thing you need is to have to worry about money at that time.
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heidrek
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| Posted: Mon Nov 30, 2009 6:36 pm Post subject: |
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"Therefore, you want a policy that will cover you for the term of life and for the term of your mortgage payments."
This is the babble of insurance agents that want to sell cash value insurance in all situations. It is not always the best advice.
The value of one's mortgage is one thing, "human life value" is another. Reread "englewood's" comment and see how he uses the words "a policy" plus the word "and". The two needs are not joined at the hip. One may have a legitimate concern about paying off the mortgage, but have no need for life insurance in other respects. Each situation is unique, and it is precisely the reason there are hundreds of different products in two basic categories (term life and cash value life) to meet those needs.
An experienced agent will first examine, in great detail, a person's unique situation and make the most appropriate recommendations. When a mortgage is part of the equation, the answer could just as easily be two policies as one. It could be one or two term policies, one or two cash value policies, or one (or more) of each.
No way to know for sure without an interview and thorough needs analysis. Do husbands and wives need joint (often) or separate (sometimes) policies, do children need separate (rarely) policies?
Beware of any agent with a single policy solution that covers all contingencies without a needs analysis, or one that involves separate contracts for each person in the household under any circumstances.
As always, if you see dollar signs in the agent's eyes, throw him/her out of your home or office. They probably don't have your best interests in mind.[/i]
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MaxHerr
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