Quote:
Originally Posted by Nufy
My understanding is that Mortgage insurance covers the mortgage only.
As the mortgage is paid off, the benefit reduces.
Life insurance is a set amount for the entire term.
Take the life insurance, pay off mortgage and keep the rest.
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Correct. I believe they are typically first to die policies that are expensive and never get cheaper despite the benefit value of your mortgage dropping. We just went through the process of changing to a life insurance policy that is half the cost of our mortgage insurance through our lender and actually pays out under much wider terms and leaves you with money left over as well.
As far as actual retirement saving goes, there is no one size fits all answer. You have to consider you and your spouses lifestyle goals, age, any type of pension you may have, CPP/OAS entitlements, property values and even inheritance. You want to prepare for everything, but at the same time, many many people die and never come close to using their savings because they followed a plan that didn't fit their wants and desires in retirement.