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What would be the best option of the mortgage or life insurance in case of serious illness? ?
Question : What would be the best option of the mortgage or life insurance in case of serious illness? ?
Also if two people are on the mortgage do they both need separate insurance or one will cover them both?
mortgage life insurance
Best answer:
Answer by mbrcatz
Mortgage insurance is the same thing as decreasing term life insurance, except it costs more, and pays the mortgage company if you die. Life insurance pays whoever you name – like your spouse – if you die.
For a serious illness, unless you are DISABLED, there isn’t coverage, except for DISABILITY coverage.
All of those policies, are written primarily on ONE PERSON, so you would need a policy for each of you.
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#2 written by duffmanasu 1 year ago
Everybody is pretty much right. Mortgage Life Insurance is usually a rip-off. It’s usually either more expensive or just as expensive as a 30 year term, but you’re paying the same premium for 30 years and getting less coverage every year. Plus, if you ever refinance or take out an equity loan or LOC it becomes a giant hassle. If all you’re looking for is coverage on the mortgage, in most cases you’re best off going with two seperate 20 or 30 year terms depending on the length of your mortgage (one for each spouse).
As far as serious illness, you’re pretty much stuck with disability. Do your employers offer disability? If they do, it’s often nice to supplement that with a mortgage disability policy that would pay your mortgage directly for you if you became disabled. This is nice because it completely eliminates your mortagage from your budget, and employer disability usually only pays about 60% of your income anyway (albeit, not taxed) so you’re on a limited income anyway.
If your employer does not offer disability, then you’d have to buy your own and you’d be better off with a straight disability policy as opposed to mortage disability.
Things may vary slightly in your state, so you’d probably be well advised to talk to a reputable insurance professional in your area.
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#3 written by Joe L 1 year ago
Fidelity Life makes a great mortgage product with no medical underwriting, You can get up to 500,000 with no medical exam it is made just for mortgage protection.
Please email me for more it would only cost you $ 60/month if you are 45 health for 300,000
josephloughran@yahoo.com -
#4 written by fargo 1 year ago
It depends on your budget. I took advice from an IFA and she explained everything to us in terms we understood and due to our budget we went for Decreasing life cover with critical illness in joint names. This meant if one of us died or got critical illness then the policy paid out and would pay off the mortgage. That is all we wanted as the other was still working. Everyone is different. If you want her details it whitejenjane@aol.com tell her I recommended you
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one policy on mortgage, but list both names on the policy.
in case of a serious illness a life policy would be better whole life would entitle you to get some of the money out if it became necessary. some companies off critical illness insurance: it you take out a $ 200,000 policy and are diagnosed with a serious illness you can get 1/2 of the money at that time and the rest when you die. check it out….. it does cost more.