What MPI Isn’t Unlike MPI, PMI is a type of mortgage insurance that is provided by a private insurance company. It is still arranged by a lender, and like other types of mortgage insurance, PMI protects the lender, not you if you stop making payments on your loan. If you have a conventional loan and make a down payment of under 20% of the home’s purchase price or you’re refinancing with a conventional loan and your equity is under 20% of the value of your home, you will likely need PMI. On the other hand, MIPs pay for insurance to protect mortgage lenders in the event that the borrower doesn’t pay them back on an FHA loan. Although MIPs can add to a borrower’s...
Continue reading...
If you’re in the process of buying a home, you’ll have a lot to organise. But while you’re sorting utility suppliers and assembling cardboard boxes, it makes sense to consider life cover as part of the process. Whether you’re a first-time buyer, moving up the property ladder or securing a buy-to-let, here’s why you might want to get that financial protection in place. Mortgage protection as a first-time buyer If you’re new to home-buying and busy getting to grips with deeds and disbursements, it’s natural not to have the long-term picture front of mind. But this is often when people first take out life insurance. Some mortgage lenders will prompt you to look into life insurance when you’re...
Continue reading...
Life Insurance to Cover Your Mortgage Life Insurance to Cover Your Mortgage More and more companies are offering a type of life insurance which is designed to help families pay their mortgage in case the homeowner passes away. USAA is an example of a company offering this type of product. Qualified USAA members buying a new home or homeowners insurance policy have an option to buy a simplified issue term life insurance policy. This gives consumers the peace of mind that their mortgage will not burden any family members if they pass away. This life insurance offered through USAA is called the Simple Life for Home plan and is intended to offer a reliable safety net for members who do not...
Continue reading...
Common Tasks Help by Topic Why consider Term Life Insurance? Term Life Insurance policies can be used to help: Tax-free death benefit paid to the beneficiaries Sustain a small business in your absence Avoid leaving a burden of debt on your loved ones after you're gone (such as a home equity line of credit, a home mortgage or a car loan) How It Works Term Life Insurance provides death benefit protection for a specified period of time. Proceeds are payable to a beneficiary at the death of the insured, provided the death occurs within the term of the life insurance policy. Term Life Insurance is typically the least expensive type of life insurance, as it covers a shorter period of time (from ...
Continue reading...
My wife and I are wondering how to begin growing our wealth. I am 34 and make $96,000, she is 33 and makes $45,000. We have a 1.5 year old at home and plans for another in the near future. I have around $37,000 in student loans left and we just opened a 30-year mortgage a year ago. We have $15,000 in a traditional savings account, I have a pension through public education, and she has a 401(k) with around $20,000 in it from an old job and another one with a few thousand in it she opened a year ago. She also has a Roth IRA a family member opened for her recently with $5,000. To muddy the waters, I will be searching for a new job next year which will mean a move with all the trappings (new...
Continue reading...
Can a life insurance policy be used to pay off debt? Yes, the death benefit from a life insurance policy can be used to pay off debt. In fact, it’s one of the many reasons why people buy life insurance. If they were to die unexpectedly, they don’t want to leave behind debt that their loved ones need to worry about. A good rule of thumb is to buy life insurance with a term that lasts the length of your largest source of debt. This is usually your mortgage. Even if you don’t personally have too much debt, your beneficiaries can use the death benefit however they wish. If they have their own personal debt, the death benefit can be used to pay this off as well. Purchasing a permanent life...
Continue reading...
The primary purpose of purchasing a life insurance cover is to safeguard your family in the event of your untimely demise. However, over the past decade, the meaning of insurance has widened to include investment products as well, as insurance companies have come up with different types of life insurance policies. Apart from pure term insurance, other life insurance products include endowment policies, money back plans and unit linked insurance policies (ULIPs). However, today insurance is not only a means to provide risk cover and investment options, but also includes an option to secure a loan. Many life insurance companies and banks allow the policy holder to mortgage his life insurance...
Continue reading...
We’ve got a new baby and a $105,000 mortgage. Is it a good idea to get mortgage insurance? Dave Ramsey, The Dave Ramsey Show Published at My husband and I had our first child in December. We bought a house not long before the baby was born, and since then we’ve been getting mail and phone calls about buying mortgage protection insurance. We’re both 27, we have good jobs, and our mortgage is $105,000. Would it be a good idea to get this insurance? Mortgage insurance is really nothing more than a life insurance policy with the word “mortgage” stuck on the front. They make it sound like a specialized product, and they jack the price up. The truth is it’s just a big rip-off in most cases...
Continue reading...
My mortgage company required me to get life insurance when I bought my house, and now I tell everyone to do the same Three evenly spaced dots forming an ellipsis: "...". Two crossed lines that form an 'X'. It indicates a way to close an interaction, or dismiss a notification. I'm from the US but I live in the Netherlands with my Dutch boyfriend. When we decided to buy a house, a colleague urged me to get life insurance. He'd lost his wife young, and her life insurance allowed him to keep his home. Turns out, like many Dutch mortgage companies, ours required us to buy life insurance anyway. It ensures that the bank gets paid if one of us dies unexpectedly. I don't even notice...
Continue reading...
Which term insurance should I choose? Term insurance enables you to secure a loan and protect your loved ones if you die or if you become unable to work for the duration of the loan. Depending on the formula chosen, you can not only meet your inheritance tax liabilities, but also guarantee a stable financial future for your next of kin. THE BENEFITS OF OUR TERM INSURANCES Why choose a Foyer Assurances term insurance plan? To help you meet your need for security, we can offer you a term insurance that is suited to your situation: Protection for your home mortgage Lump sum payable to your loved ones Tax deductible premiums TERM INSURANCES TO FIT YOUR NEEDS Focus, repaying the amount...
Continue reading...
