Mortgage Life Insurance is a Ripoff
Yes, you do need life insurance, but mortgage life insurance is another story. When people take out mortgages, they’ll likely hear a pitch to buy a policy that will pay off your mortgage in the event of your death. Sounds good, right? It plays on our emotions about providing our family with a roof over their heads in case “something should happen” to us.
The truth is, mortgage life policies are nothing more than life insurance that costs four times too much. Just get a plain vanilla term life insurance for the right amount (10x your salary) and your beneficiary can pay off the mortgage when you die. If you are stuck with a mortgage life policy now, make sure you have a good term life policy and then cancel the mortgage life.
Readers, what do you think? Did you get stuck with one of these policies and regret it? Or do you think they’re worthwhile? Share your thoughts!