Mortgage life insurance

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PostPosted: Sat May 23, 2009 11:00 am   Post subject: Mortgage life insurance  

The mortgage company I'm dealing with wants me to purchase mortgage life insurance. But I'm not sure about paying on top of my mortgage installment, which is already high. Do I really need to purchase mortgage life insurance? What would it cover?


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Lamejoe
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PostPosted: Sat May 23, 2009 11:34 am   Post subject:   

The person wants to earn a commission. Mortgage life insurance is overpriced decreasing term insurance. If you want life insurance, talk to a broker who can be of help to you.

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PostPosted: Sat May 23, 2009 6:41 pm   Post subject:   

Mortgage life insurance or are they wanting you to buy Private Mortgage Insurance (PMI)?



PMI can be required, mortgage life normally cannot be required.



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PostPosted: Sat May 23, 2009 11:19 pm   Post subject:   

Well i think there is no as such need to take such a policy.

It is sure that the person wan to make some commison from you but if you think that you still need it then you can use it as long time as you want.

Usually the life insurance that are normally avaliable are sufficient to spend all the expences of remains.

so why to bother about this one.



Better invest in some high profit life insurance so you can get some benifit in your living life too.

rest it all depend on you. SmileSmileSmile

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PostPosted: Sun May 24, 2009 12:53 pm   Post subject:   

IMO, any type of 'credit life' insurance, is a horrific waste of money, unless you're collecting the commission that is Rolling Eyes as long as they are not talking about PMI, and they are talking about credit life, tell 'em to kick rocks...if for some reason they have a legal or underwriting reason, then get your own term policy...geeeeeeeeeeeze people that try this kind of crap really tick me off Mad



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PostPosted: Sun May 24, 2009 2:27 pm   Post subject:   

Just to be fair, it can make sense in cases where someone has a health issue and can't qualify for other insurance.

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PostPosted: Sun May 24, 2009 2:40 pm   Post subject:   

Quote:
Just to be fair, it can make sense in cases where someone has a health issue and can't qualify for other insurance.
well ok, i'll give you that one...but that's the only reason.. WinkLaughing


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PostPosted: Mon May 25, 2009 2:15 am   Post subject:   

If they are telling you that it is required (and it's credit life)...contact your state's department of insurance. We just had a mortgage broker / insurance agent get nailed here in SC because he was telling his clients it was mandatory to accept the credit life or they would be unable to get the loan. All the anti-tying laws are enforced and your state's department of insurance would be very interested in hearing about it!



It's the same way with Auto Loans. They CANNOT require that you accept extended warranty's, disability insurance, unemployment insurance, or credit life insurance. I'm not sure if they can legally require GAP insurance...but then again that's not a bad idea if you're going to be upside down in a vehicle!

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PostPosted: Mon May 25, 2009 11:44 am   Post subject:   

Good points, and direction (as always Wink ) Chris.



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PostPosted: Wed May 27, 2009 4:34 am   Post subject:   

Quote:
Better invest in some high profit life insurance so you can get some benifit in your living life too.




There's no such thing as "high profit" life insurance. Certain life insurance policies have living benefits, but again- there's no such animal as for-profit life insurance when considering the idea behind "profit."



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PostPosted: Wed May 27, 2009 11:18 am   Post subject:   

Mortgage life insurance is for the bank. It would get their loan back at your demise when you would pay the premiums.



In a mortgage life insurance policy the bank would be the beneficiary and not your heirs. Therefore, your family or children wouldn't receive the death benefit.



Further, as IE has mentioned mortgage life insurance is overpriced term life policy where the coverage level would reduce with your repaying the mortgage the premium level would remain almost the same.

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PostPosted: Sat May 30, 2009 6:29 am   Post subject:   

Insurance industry studies show that it is very unlikely that the death benefit will ever be paid on a term insurance policy. One study placed the percentage as low as 1% of policies paying a benefit. That is the reason term insurance is able to be so inexpensive.



Add this to the fact that you are paying the same amount each year for a policy that is worth less each year and you get a big win for the insurance company.



Be smart. "Buy the house" when purchasing a life policy. A whole life policy builds equity (cash value) just like your home. If you live too long, you can use the accrued monies to assist you in your retirement.



Term life is like renting an apartment. As long as you pay you have coverage. Just like when renting an apartment you have a roof over your head.



If you live in Arizona, contact (link removed by moderator lori) to get your life insurance tailored to fit your needs.

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PostPosted: Sat May 30, 2009 11:19 am   Post subject:   

Tim, welcome to the community...there is no 'hawking of wares' in the threads allowed...(please see the Terms of use link at bottom of page )...after you have made ten (i think that's right) posts you can add a signature to your profile, you can put the link to your website there but not in the threads...please feel free to send me a PM with any questions....lori



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PostPosted: Sat May 30, 2009 3:19 pm   Post subject:   

Quote:
Be smart. "Buy the house" when purchasing a life policy. A whole life policy builds equity (cash value) just like your home. If you live too long, you can use the accrued monies to assist you in your retirement.




You sound like the kind of agent who gives others a bad name by pushing product without facts. Very few people can afford the coverage that they need without at least having some of it as term insurance and most people need to have a large % of their coverage as term coverage.
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PostPosted: Mon Jun 01, 2009 3:39 pm   Post subject:   

Quote:
Insurance industry studies show that it is very unlikely that the death benefit will ever be paid on a term insurance policy. One study placed the percentage as low as 1% of policies paying a benefit. That is the reason term insurance is able to be so inexpensive.





I hope that the death benefit on my term policies is never paid out! Term insurance is a very inexpensive way to protect a family or a temporary bill (mortgage, etc.) While insurance can be used as investment products, there are far better investments with better returns out there.



There is a need for all types of insurance policies, but many people could not afford to simply have a whole / universal policy that would provide enough coverage.
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