When buying a home many people rightly consider purchasing life insurance. The problem with buying life insurance through your mortgage company is that it will cost you much more than purchasing a simple term life insurance policy. This question has come up for years, the idea of buying an insurance policy associated with a car loan, a mortgage, a credit card, or other installment agreement. This is a huge profit center for financial institutions and many of them put a great deal of pressure on consumers to take this coverage. Rather than having multiple insurance policies, and over-paying for them, my suggestion would be to purchase one term life insurance policy that covers your total life insurance needs (including the need for income replacement).
In today’s post I will not get into how to determine life insurance needs and appropriate amounts, but suffice it to say that it is far better to approach your life insurance needs through a single term life policy than individual credit life type programs. A simple rule we have been teaching for years is the principle of having 8 to 10 times your income in life insurance coverage. For links to shop for life insurance click here. Agree or disagree, click on comments below. Do you have a question you would like answered in our daily Q and A? Send it to firstname.lastname@example.org
Helping you make the most of God’s money!