Insurance to pay off our home when I die.

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PostPosted: Fri Sep 04, 2009 2:06 am   Post subject: Insurance to pay off our home when I die.  

I would like to have some insurance to pay off our home when I die so that my wife doesn't have to give it up and move out on the street. What do I need and how do I get it?


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danpa54
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PostPosted: Fri Sep 04, 2009 2:12 am   Post subject:   

Does your wife work? Aside from the need to pay off your mortgage, what will she do for income if something were to happen to you? How old are you? What state are you in?

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PostPosted: Fri Sep 04, 2009 2:20 am   Post subject: Wife working  

No my wife is disabled. She does draw a small ssdi check every month, enough to live on but not with the mortgage payments coming out too. I am 66 and live in Indiana. I have a pretty good life insurance policy and a good homeowners policy but when I ask about something to pay off the mortgage in case of my death, I never get a response.

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PostPosted: Fri Sep 04, 2009 2:22 am   Post subject:   

Is your life insurance policy enough to pay off the mortgage? How much is the death benefit on the life policy, and what is the mortgage payoff?

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PostPosted: Fri Sep 04, 2009 2:30 am   Post subject: Life  

The life insurance is enough but I want her to have that to live on so that she doesn't have to rely on her disability and just squeek by. I just want to have something to pay off the mortgage. My friend had something that paid it off for his family but they moved away and I can't contact them to find out what it was or how to get it.

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PostPosted: Fri Sep 04, 2009 2:42 am   Post subject:   

Any policy that will pay off the mortgage is just a life insurance policy like you have now, except it may have been simplified underwriting with a much higher cost. You would probably best off with a fully underwritten policy to get the lowest cost assuming you are willing to take an exam. If you can answer the following questions, it'll be easier to give you an estimated cost:



1. How much coverage to pay off the mortgage? How many years will you need the coverage?

2. How much are you expecting the coverage to cost approximately?

3. What is your height/weight?

4. Are you taking any prescriptions? If so, what are they and what are they used for?

5. Are you being treated for any medical conditions?

6. Any family history of cancer or heart disease before age 60?

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PostPosted: Fri Sep 04, 2009 3:05 am   Post subject: Thanks  

To many questions for online. I know that whatever my friend had was included in his mortgage because his wife had no idea that it was there and she was afraid she was going to lose the home but the mortgage company notified her that upon receipt of his death certificate the home was paid in full and the deed was sent to her. It was all done automatically. No other insurance company sent her anything as he didn't have life insurance. He also had a loan through the same company on his autos and they were also paid in full and she received the titles to them with the deed to their home.

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PostPosted: Fri Sep 04, 2009 3:10 am   Post subject:   

You came here asking for information, but nobody can give you that information without the answers to those questions....just because your friend had the cost of the insurance included in his mortgage does not mean that it wasn't life insurance. I'm sure you don't expect it to be free....



I would put $20 on it that he signed up for mortgage life insurance when he bought the house, which is just another term for "overpriced rip-off". A fully underwritten policy will be by far your most cost-effective option. If you want some help, let me know. If not, I'll just stop responding. Sorry to be so blunt, but you can't ask for help without being willing to answer a few simple questions.

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PostPosted: Fri Sep 04, 2009 4:01 am   Post subject:   

danpa, answer his questions if you want help. Mortgage life insurance is overpriced decreasing term insurance.



If your friend would have taken out a normal life insurance policy, for the same premium, she could have paid off the house, the cars, and had lots of money for herself.

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PostPosted: Fri Sep 04, 2009 12:00 pm   Post subject:   

IMO, the ONLY time that credit life (that's what they call it in my part of the world), is a good idea is if you are uninsureable, for a regular term policy. The last time I saw a credit life cost (which of course I refused) it was about 15.00 a month, for a starting mortgage of about 80k...



Call your mortgage company if your dead set on this (pun intended Wink ). They should be able to sell it to you on the phone, and add it to your mortgage. This is usually brought up at closing.



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PostPosted: Fri Sep 04, 2009 12:39 pm   Post subject:   

Here, you can read this about credit life: http://abcnews.go.com/Business/PersonalFinance/story?id=6256535



Bottom line, it's still life insurance, just a crappy overpriced version of it. I can guarantee it won't be $15/month for $80k of life insurance on a 66-year-old. If you qualify for a standard risk class, you'd be looking at about $136/month for 15-year term insurance on $100k of coverage. If you are in good health and can qualify at preferred, you'd be looking at about $90/month for $100k of coverage on a 15-year term. You can roughly double those rates if you're a smoker. Longer term = more $$

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PostPosted: Fri Sep 04, 2009 12:53 pm   Post subject:   

Quote:
just a crappy overpriced version of it.
couldn't have put it better myself...I should've mentioned as well the last time I saw this premium, we were in our late 20's or early thirtys, good health, blah, blah, it was also more than 25years ago Rolling EyesWink


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