Life/Disabilty Insurance for a mortgage

[Slava]

Originally Posted by Titan

i'll let the pros give advice on the policies but I think it is a good idea to make sure you name your beneficiary. If you leave it as estate it can be claimed by debtors and relatives that may think they have a claim. If you name the beneficiary it goes straight to them and the estate has no claim on it.

I deal alot with Powers of Attorney and Disabled Adult trustees. If the person did not set up their affairs properly, the trustee has troubles getting their wife on as the beneficiary as a Power of Attorney does not have the authority. If you set it up on a previous account and something happens the wife can argue that is what you intended. Sounds obscure but is a very important point.

Not only that but leaving life insurance to go through the estate makes some of the major benefits meaningless. Life Insurance pays quickly in the event of a claim and does not go through the estate, which can take months to settle.

Estates are also a matter of the public record and having life insurance (or investments through the insurance act) circumnavigates this aspect. Might seem like no big deal...but if there are fights to be had this is critical. Little Johnny can't get mad at Little Susie if he doesn't know that an insurance policy paid her an extra million, or whatever that case maybe.

[macker]

http://www.zavitzinsurance.com/main2...C84793CC38425E

Send this guy a random request if you are interested in reading "Russian Roulette" It was a very hard book to find when I went looking for it....I saw on his site that he will send out copies of the book if requested. Likely not the first thing most people want to read about but if you are ever faced with a DI you will be glad that you were informed as "the worst thing about insurance is that you can't buy it when you need it" (Robert Kiyosaki?) ...and you want to make sure that you have bought the right kind/amount of insurance that will actually pay out when needed....
One of two things is certain; either you will live or die. If you live, you will need money. If you die your family will.

[evilcougar]

most of the statements on here i agree with so far....but, you'll all notice i said CHECK REQUIREMENTS. just b/c you get mortgage insurance doesnt' mean its the same across the board for every single company.
my company offers life coverage only but the premium declines with the balance. YES there is a health questionairre and if you die of one of the 7 things on that list (HIV, heart disease etc...) then you're not covered. but thats why the premium declines.
its definatley a rip off to pay for mtg insurance where the premium doesn't decline. giant waste of money.
all i'm saying is do your research. those are the questions you need to ask. if your mtg is thru a company that offers a crappy deal on life or dis coverage then do'nt take it.
that simple.