Mortgage Life Insurance

[Jodi1980]

My mother and I are the co-owners of the house in which we live. If something happens to me, I have enough life insurance to cover the balance of the house. I wonder what the cost would be to get insurance from the bank in case my mother passes away so the mortgage would be paid-she is 79 years old!

Does anyone have this type of insurance from the bank where you hold your mortgage?

 

[hrh_disney_queen]

Originally posted by Jodi1980
My mother and I are the co-owners of the house in which we live. If something happens to me, I have enough life insurance to cover the balance of the house. I wonder what the cost would be to get insurance from the bank in case my mother passes away so the mortgage would be paid-she is 79 years old!

Does anyone have this type of insurance from the bank where you hold your mortgage?

When I worked in the escrow department of a mortgage bank many years ago, this was a thing that the bank was always more than happy to offer (read-"push") to customers. I don't remember the rates back then-they wouldn't be relevant now-but I do know that you would probably be better off getting your own policy on your DM, rather than the one the bank offers. Another draw back for the MLI is that when the mortgage is paid off, the insurance stops. So depending on how long you intend on paying off the mortgage and if you want it to continue afterwards, that is another consideration.

My gut feeling is that since the bank was so eager to offer it, it wasn't such a great deal for the customer!

Good luck..

 

[IMGONNABE40!]

We did not get mortgage insurance as offered via the bank, but we did get a life insurance policy through State Farm which will cover the amount of the mortgage (and maybe a new car!) if something were to happen to either one of us.

 

[tar heel]

It's a VERY expensive form of life insurance and a bad deal for most people. Since it would probably be hard to find life insurance for someone her age, it may be a good option if you can get her approved.

 

[Pin Wizard]

We didn't get it through the bank. We did get life insurance policies through Met Life to cover the amount of the mortgage. Thank God I had it when DH died!!! Especially with a baby on the way! In my opinion, it's worth EVERY penny!!

 

[Lynn CC]

We got private mortgage insurance in case one of us died through Monumental Life. It was $12.00 a month. We cancelled it when we had about $10,000 left on the mortgage, it was simple to cancel, just a phone call and a written letter.

It was peace of mind for us to have it just in case one of us died atleast we knew the other wouldn't be burdened with a mortgage payment.