There’s an interesting article at Indystar.com regarding whether one should have mortgage life insurance.
The article states in part: “Simply put, if dying puts a hardship on your family because of your debt, reduction of income or lack of assets, insurance is needed. Most families probably would experience all three hardships. Therefore, proper planning for those events is the foundation of anyone’s financial plan. Paying off the mortgage is just one way insurance proceeds can be used. Now let’s answer the question that may be on everyone’s mind: “Should I sign up for the plan that is attached to my mortgage?”
Though it is easy to sign up, you need to read the proposal thoroughly before making your decision. It also is recommended that you take the time to review the costs versus setting up your own personal insurance plan.
These days, life insurance can be more flexible and less costly than the mortgage insurance plans that are being offered. The term insurance marketplace has many options you can use to design your own plan to retire the mortgage if something were to happen to you or your spouse.
In a nutshell, before you check that box that would provide mortgage insurance to pay off your house if you die, do some research. You may find the costs and flexibility of your own personal plan to be more appealing than other alternatives.”
I agree with this article. It’s important to take care of one’s family financial obligations and in case of death with adequate life insurance. It’s not just the mortgage but also making sure that there’s enough cash to create enough principal to invest and replace one’s income.
You can get some help by following this link, “How much life insurance should I have?” Also, it’s very likely that you can get life insurance less expensively or with a better design (mortgage life insurance decreases along with the mortgage) by checking life insurance quotes.