What Type Of Life Insurance Would Be Best?
Posted February 9, 2010 – 4:53 am in: structured settlements FAQI am buying a home and would like to have insurance that would pay off the balance of home if i die before it is paid off. I am using a VA loan so I do not have to have mortgage ins. But I would like to know is such ins rates go up or down due to age and balance left on loan term?
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2 Comments
WHY? Who’s going to be in the house after you?
You CAN buy a fixed rate life insurance policy. But, if you buy a ‘mortgage life” policy, then they ONLY pay off the loan balance, and they pay the lender. That means, each year, you keep paying the same amount in on life insurance, but the PAYOUT amount goes down, as you build equity in your home.
Plus, it’s more expensive than regular term life insurance.
SO. If the goal is wifey or kids should be able to live in the house paid off, buy a regular TERM LIFE insurance policy, for 20 or 30 years, name wifey the beneficiary, and the payout amount won’t go down! The rate is locked in for the whole 20 or 30 years! AND, it’s cheaper than mortgage life.
lifeinsurance.awardspace.info – try this one. I have their insurance and, as remember, they can provide such a service.