OT - ? about Mortgage Insurance ...

[stefanospops]

Are you saying that you don't think people need insurance to cover their mortgage? I am confused...I don't want to disagree with you if I am not understanding you but if that's your thoughts I'd like to know more.

The reverse. I think people should insure themselves, but also try to have the discipline to get to a point where insurance is no longer necessary. If you owe money on a home then the best thing you can do for your dependents is to have enough insurance to cover the balance of the mortgage.

The second point is that people should really look at how they manage their mortgages when they come up for renewal. In my business I find there are a fair number of people who don't really understand how a mortgage payment is determined. I don't want to bore people with that here, but the point is that everytime you renew your mortgage make sure you decrease your amortization to at least coincide with the number of years of your previous term. Clear as mud?

 

[lizzyb]

You said



Which led me to believe you thought whole life was better and what I am saying is most financial planners disagree that it is the better option.

But I wouldn't make a decision like that based on what people on a Disney board are saying. Read some financial publications and see what the experts say before you decide.

I think you misunderstood my reply. For my needs I have choosen to have mortgage insurance and a whole life policy. While some financial planners would not agree, all financial planners would agree that you have to chose the insurance product and coverage that will best achieve your retirement/protection goals.

I agree with the pp that mentioned that if you choose to go with the term policy route that you need to make the necessary adjustments to ensure you are properly insured.