[coupqn1999]

We bought this house we have been renting for a year and 4 months.We closed escrow on March 3,2003 our first home its great and I LOVE my house BTW. My question is about finances sorta......... my hubby wants me to look into mortgage insurance or life insurance so that if anything,God forbidden were to happen to him me and kids could pay off the house and it would not be a problem.My question I guess is what would be the better decision?Mortgage insurance that would handle a disabilitry or anything and pay off the house or just life insurance?
The only thing with the mortgage insurance is if you pay off the house before you die wouldn't you lose most of what ya payed in?
Ok any help would be greatlyyyyyy appreciated!!
Thanks
Denise

 

[Patchworkgirl]

I am a big fan of both. The key is to have enough money so that you can raise your kids and still be comfortable. Buy as much insurance as you can afford!!

 

[captclearance]

As the house pays off, the insurance company should sharge you less to insure or keep you at the same claim amount.....

 

[crdurham]

When we bought our house in Oct 01, we got life insurnace that will pay the amount our house is worth if either one of us should die. The policy is a cash policy but will always be for the amount originally purchased. A few months ago, my husband added to his policy 5 years salary, since we are having a baby. That way if something happened to him, I could pay off the house and stay home with our baby for a few years. I would compare the costs of both and see which would be best for your family and situation.

 

[qponfanatic]

We bought this house in Oct. 02 and have BOTH. We wouldn't have it any other way. That way we are covered. I was under the impression that you had to have it in order to purchase? Maybe just in some states.

 

[milach]

We have the same as crdurham, through an insurance company of our choosing. Our amounts would cover the mortgage and equity loan if either of us should go- or if one of us could no longer work.

One thing I've been told is to never purchase a mortgage life insurance policy through the bank at closing, because say if either of you were to die- the bank would get the money. If you get your own policy, the insurance company would give you the money. That's better because say your dh died and your kids were all grown- you could take the insurance money and put a down payment (if not pay cash in full) on smaller house if you didn't want the burden of living in a house way too big for one person. You can the take the proceeds from your first house and use that to pay back the bank. I guess the point is- if it's a private policy- you'd get the money in hand to do whatever you want with. If it goes straight to the bank- then you have no control over the matter.

I hope all that makes sense!!

Laura