Denised, Other/Just Looking in Jacksonville, FL

What type of insurance should my dad have on his mortage so when the day comes I won't have to worrie if his mortage is paid or worst case he?

Asked by Denised, Jacksonville, FL Tue Nov 10, 2009

passes away will it be paid off.

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Answers

3
Your father is better off w/ a fixed term life policy. The problem w/ mortgage life insurance is that is costs about the same as fixed term, maybe a little less but not much, yet it only pays off the balance on the home loan. So, as the mortgage balance continues to decline throughout the years, the life policy payout declines w/ it. On the other hand, your father may take out a 15 year fixed tem life policy for $200,000 and if he passes away on year 14, his beneficiaries get $200,000. Say 14 years from now the mortgage balance is $100,000, then there is another $100,000 left.
1 vote Thank Flag Link Thu Nov 12, 2009
Denised,

Also price out a 10 year fixed term policy for the mortage amount would cost.
You then have flexibility to do as you wish with the funds.

Phil Moody
904-982-3373
0 votes Thank Flag Link Thu Nov 12, 2009
The type of insurance is called "Mortgage Life Insurance" and you can find it by doing an online search or calling your insurance agent to find out if they carry this type of policy.

Hope this helps, Denise.

Sharon Alters, CDPE, GRI
Short Sale Specialist ~Distressed Properties
Watson Realty
904-673-2308
sharon@teamalters.com
Web Reference: http://teamalters.com
0 votes Thank Flag Link Tue Nov 10, 2009
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