Life/mortgage insurance?

[Dolomite_supafly]

I remember it used to pretty common to be able to get life insurance attached to mortgages but since the collapse it seems not so much. I am wanting to refinance my mortgage and add some sort of life insurance to it.

I am not sick and hopefuly not going anywhere any time soon but was looking into something to make sure my wife isn't out in the cold if something does happen. Traditional life insurance, if I can get it, tends to be very pricey for me because of the pre-existing injuries I have from military service. Insurance that pays off the mortgage would be something I was looking at.

I am wondering if anyone knows of any lenders that offers insurance as part of a refinance? Or seperate insurers that offer mortgage insurance?

I do not owe more than the house is worth and the amount to be paid off is less than my annual income.

Dolomite

[TMF]

Do you still use VGLI?

[Guest nicemac]

Just rememberin'…

Listening to Dave Ramsey, he proclaims that type of insurance is one of the biggest rip-offs in the industry. The amount you pay for it stays constant, but every month, the benefit drops as your principal balance drops. Even at an elevated rate, traditional term life insurance is a better deal.

[Volzfan]

Just rememberin'…

Listening to Dave Ramsey, he proclaims that type of insurance is one of the biggest rip-offs in the industry. The amount you pay for it stays constant, but every month, the benefit drops as your principal balance drops. Even at an elevated rate, traditional term life insurance is a better deal.

This is what I've done.

[Dolomite_supafly]

Problem with traditional is my preexisting conditions either excludes me or the payments are way out of line.

Last quote I got was $279 a month for $10K. I could just save the payment and have the same amount in 3 years. I am saving money but not enough to pay off the house in the next 10 years.

I just want to be able to check a box on the refinance and be good.

I did not find out about converting SGLI to VGLI until the time frame had lapsed. When i exited the service it was unexpectedly and on short notice. By the time I got the information on it my window was gone.

Dolomite

[Gophert]

Dolomite,

I am an insurance agent in the Nashville area. Perhaps I can give you some direction. I would suggest getting your own policy to cover the mortgage that is NOT associated with the mortgage itself. Reason...in case you ever refi again...you have a policy in place that cannot be cancelled. In other words, you control what happens with the policy rather than the mortgage company. As far as what product to buy, that will be based off what you want it to do. The problem with Dave Ramsey's prescription of "buy all term" is that does not fit the need of 100% of everyone. I'm sure he doesn't suggest that everyone buy the same mutual fund so why would it be prudent for everyone to buy just term insurance. It all depends on your need for the product.

Based on what you are telling me, I would probably go the Term route if the only reason you need the insurance is for mortgage protection. You should be able to find a term (10 yr, 20 yr, 30 yr level term) that will be close to the amount of time of the loan and this would be your cheapest route to go. If you are wanting some life insurance to be in place when you die (which may be 85), your only guarantee is to buy as much Permanent (whole life, universal life) as you can afford.

I hope this helps the insanity!

Tim

[Caster]

Man, I really hate life insurance. My wife's dad took out a policy on me years ago. I'm not overly fond of being worth more dead than alive. And right now, I am.

[Guest nicemac]

The problem with Dave Ramsey's prescription of "buy all term" is that does not fit the need of 100% of everyone. I'm sure he doesn't suggest that everyone buy the same mutual fund so why would it be prudent for everyone to buy just term insurance. It all depends on your need for the product.

Dave's term-only recommendation is part of a strategy that includes starting to build your nest-egg when you are still young so that by the time you end your 20-year term, you are essentially self-insured. If you have enough cash in the bank, you simply don't need life insurance.

You are correct, that won't work in a situation where the insured doesn't have the nest egg in place. But for 20-somethings getting started, build your savings NOW and by the time you are old as I am, you should have your mortgage paid off and be able to dump the life insurance altogether (Disclosure: I didn't save like I should have, so I don't have the mortgage paid off, so I still have life insurance for a while yet…).

[UncleJak]

I have a term policy that has enough coverage to pay off my mortgage and other debts in the event of an untimely demise. My wife and I added all the debts, loss of income for about 10 years, and a nest egg for the kids college and got a policy for that amount. I even found a company who would not make me take any medical tests. (I am anti-doctor)

[TMF]

I did not find out about converting SGLI to VGLI until the time frame had lapsed. When i exited the service it was unexpectedly and on short notice. By the time I got the information on it my window was gone.

Dolomite

Have you checked with USAA?

[Gophert]

Dave's term-only recommendation is part of a strategy that includes starting to build your nest-egg when you are still young so that by the time you end your 20-year term, you are essentially self-insured. If you have enough cash in the bank, you simply don't need life insurance.

You are correct, that won't work in a situation where the insured doesn't have the nest egg in place. But for 20-somethings getting started, build your savings NOW and by the time you are old as I am, you should have your mortgage paid off and be able to dump the life insurance altogether (Disclosure: I didn't save like I should have, so I don't have the mortgage paid off, so I still have life insurance for a while yet…).

I agree, Dave's prescription is not a bad one. It's pretty simple, spend less than you make, put money into long term savings plans, and carry Term insurance to protect you while you are self insuring. The problem is that 90% of the people that walk into my office, and quote the Ramsey plan, only "hear" the buy term part. When I ask them what mutual funds they are investing in, they can't provide an answer. My job as an insurance agent is to provide protection as long as the client thinks he or she needs it. I don't push one product over the other. I give options to a need and let the client decide on the option that best suits their need.

Sorry to get off OP topic....I would suggest talking to a reputable insurance professional in your area to find the solution that is just right for you.

[quietguy]

Have you checked with USAA?

This would be my suggestion as well.

[Dolomite_supafly]

I have a term policy that has enough coverage to pay off my mortgage and other debts in the event of an untimely demise. My wife and I added all the debts, loss of income for about 10 years, and a nest egg for the kids college and got a policy for that amount. I even found a company who would not make me take any medical tests. (I am anti-doctor)

Company?

Like I said the problem is pre-existing conditions as well as the fact I have been denied previously. Anytime you have been denied it seems like every other company will not even consider me.

I will also check with USAA.

Dolomite

[JPR1959]

This company provides the cheapest life insurance I have ever found. I heard about them from David Givens, who started a similar program to Dave Ramsey's but far earlier. The company is ATAP Insurance Clearinghouse. Phone number is 1-800-522-2827. I got a 20 year term $250,000 policy at 50 yrs old for less than $650/year. I've had a policy through them for 20+ years.

[MphsTiger1981]

I remember it used to pretty common to be able to get life insurance attached to mortgages but since the collapse it seems not so much. I am wanting to refinance my mortgage and add some sort of life insurance to it.

I am not sick and hopefuly not going anywhere any time soon but was looking into something to make sure my wife isn't out in the cold if something does happen. Traditional life insurance, if I can get it, tends to be very pricey for me because of the pre-existing injuries I have from military service. Insurance that pays off the mortgage would be something I was looking at.

I am wondering if anyone knows of any lenders that offers insurance as part of a refinance? Or seperate insurers that offer mortgage insurance?

I do not owe more than the house is worth and the amount to be paid off is less than my annual income.

Dolomite

Dolomite,

I recently refinanced my home at a lower rate and I'm now receiving offers for insurance in the mail, almost daily. The last one I read offered to insure us (me and the wife) for the amount of the mortgage for the life of the loan, regardless of our balance of the loan at the time. If I'm not mistaken, it also offered to refund the entire amount of all premiums paid if we both outlive the loan, which if you pay it off early might actually happen. Worth checking.

Edited January 23, 2012 by MphsTiger1981

[Guest db99wj]

Due to the preexisting conditions and previous denials, the mortgage based insurance, if you would indeed qualify, might be the best route for you. However, get with an insurance agent and go over your pre existing conditions and see if there is a fit out there for you. You sound like you might be at a point where going into an agents office is the best way to do this compared to calling/internet info and application submission.