by Guest » Sat May 23, 2009 11:00 am
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?
Posted: 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.
Posted: Sat May 23, 2009 06:41 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.
InsTeacher 8)
Posted: 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. :) :) :)
Posted: 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 :roll: 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 :x
Posted: Sun May 24, 2009 02:27 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.
Posted: Sun May 24, 2009 02:40 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.
well ok, i'll give you that one...but that's the only reason.. :wink: :lol:Posted: Mon May 25, 2009 02:15 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!
Posted: Mon May 25, 2009 11:44 am Post Subject:
Good points, and direction (as always :wink: ) Chris.
Posted: Wed May 27, 2009 04:34 am Post Subject:
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."
InsTeacher 8)
Posted: 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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