Question:

Should I get a mortgage payoff insurance?

Answer:

A mortgage payoff insurance is not the private mortgage insurance we are talking about. A mortgage payoff insurance is supposed to pay off your mortgage in case of death of the borrower responsible for the mortgage.

Do you really need a mortgage payoff insurance?

In most cases, the answer is no. You should talk to a financial planner to get a larger picture of the needs your family has. Paying off the mortgage may not be what is best for your family, should anything happens to you. Perhaps they will be better off making the mortgage payments themselves and using the insurance funds for something else. It might be way better if you simply get more coverage with your life insurance to include a part of the mortgage cost, instead of buying separate mortgage payoff insurance. The reason: a mortgage life insurance will require payments and may never be used as it ends when the mortgage is repaid.

Similarly to a mortgage payoff insurance, a general disability insurance is recommended over mortgage disability insurance. The only worth reason for one to buy a mortgage life or disability payoff insurance may be they are not eligible for a general life and disability policy, or cannot afford one.

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