hip_domestics: mortgage life insurance?

by angela

We bought our first home in the spring time and since then have been getting mailings about Mortgage Life Insurance. I'm not sure of the price yet. It says it could pay the mortgage off in full in case of death and make payments in case of a disability or illness. My husband's life insurance policy wouldn't pay enough to pay off the house and he does have long term disability insurance that pays 60% of his salary if something were to happen, but for the next few months we're paycheck to paycheck. I'm a SAHM so I no longer contribute financially. Rant: I don't think student loans should lower your credit score unless you don't pay them on time. My husband has a TON from law school and while the mortgage company told us while our scores are still good, they'd be like 750-780 if we didn't have student loans. They're STUDENT LOANS!!! It isn't like we have 50 credit cards, or 3 car payments...ugh. well, not always a scam. However, when you buy a house, whatever financial institution you borrowed the money from puts you on their list and farms out your information. its standard. they have all this information they just collected from you, credit scores, salaries, debt, types of investments etc. valuable info that you don't necessarily want sold out. Somewhere in all your paperwork, there should be a number you can call to opt out of receiving these mailings, and to make it so they will not share your info. because you will get a lot and they aren't always affiliated with anyone you have already done business with, even though the language sounds as if they are. If you're looking at mortgage insurance, make sure the insurance protects you and not the bank. If you're still young, it may be just as inexpensive to get a term life policy that pays cash as it is to get a policy for your mortgage that only pays your mortgage. Having a regular life insurance policy for the amount your home is worth also gives you a bit more flexibility. For instance, what if your priority at...

Read more...