Mortgage Insurance ?

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I was looking into buying mortgage insurance to cover me in case something happens. I found out this existed when someone I know died very suddenly. I went to the bank where my mortgage is and they told me they only offer it on new loans( my mortgage is 2 years old ). I was not offered this protection
when I applied for this mortgage ( actually it was a refinance of my original mortgage ) as I applied through a mortgage company.I was told the best thing to do now was take out a life insurance policy, which I already have, but that dosent cover my husband or myself if we lose our job or become disabled.Does anyone know where I could look into this or is it even worth it? The insurance company that carries my house and auto insurance does not offer mortgage insurance.Any help would be greatly appreciated! Thank You

5 Comments
  1. Reply
    mohan r
    May 3, 2011 at 11:18 pm

    Approach any insurance company to know more about it

  2. Reply
    mbrcatz17
    May 3, 2011 at 11:20 pm

    Mortgage insurance is also called decreasing term. It’s for the remainder of the mortgage, if you die, and only pays the payoff. It costs MORE than regular term.

    So, you’re BETTER off if you buy a level term policy – it’s cheaper, and it DOESN’T decrease each year.

    There’s ALSO disability coverage. It’s a different policy, and depending on your ages/health, it can be pretty expensive. Unemployment is NOT a private coverage in the us, you can ONLY get it through your state unemployment office.

    Talk to your agent that does house and auto – ask him if he sells level term coverage, and/or disability coverage. If he doesn’t, ask him for a LOCAL referral. IF you’re with a direct writer, ask a neighbor or friend who their local agent is.

    I really really strongly recommend dealing with a local agent. If you can’t find one, these guys are pretty good, and licensed in most of the 50 states: http://www.zanderins.com

  3. Reply
    aaron p
    May 4, 2011 at 12:13 am

    The main advantage to “mortgage insurance” is a simplified underwriting process (but only up to a certain amount). Fidelity Life Association has a similar term product that doesn’t require a mortgage and is incredibly competitive when you look at the traditional players in the mortgage market like: Shenandoah, Old Mutual (F&G), and Mutual of Omaha.

    Having said that, a fully underwritten product will generally be less expensive because they accept less adverse risk – having a complete picture instead of just part of it when they make a decision. Your home and auto person should have that (and should have been able to explain this). Check them out along with what other independent agents can offer you. A good agent won’t mind a little friendly competition if it benefits you in the end.

  4. Reply
    Joseph B
    May 4, 2011 at 12:26 am

    What is good for you? You need to speak to a licensed agent and he can help you find out. Do you want disability coverage in case you are sick or injured for a long period of time? Do you need insurance to cover the specific term of the policy? Do you want both? You need to speak to a licensed agent in your state and they can help you. Good luck.

  5. Reply
    generous
    May 4, 2011 at 12:50 am

    please try this help!

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