Do I Even Need the Insurance?
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I may have mentioned that yesterday I went and looked at some model town homes. I am at the point where a townhouse or an attached villa seems like the right option for me and my daughter. Why own more than I need right now? As long as we have the space to be comfortable and can afford to live in a safe and desirable neighborhood, I am good to go.
So, I started giving some thought to the fact that I will be the sole person responsible for the mortgage and part of why I want to buy some real estate is so that I have something to leave my daughter; something of substance. Something she can bank on in the future. The issue of mortgage life insurance came up. I am not taking about private mortgage insurance, or PMI, which is what you need to have if you put down less a 20% down payment on a home. I’m talking about mortgage life insurance, which will repay your mortgage in the event of your death, disability or some incapacitating disease. I have to take my overall financial picture into account when deciding to buy life insurance. In that respect, I am looking for someone to talk to about options and the real needs I do or do not have. I will more than likely hold off until I find a friend who can give me unbiased input.
I sure that’s a very good question for many people. I’m of the opinion that the coverage is worth it for people with children. We just purchased a home, and since the loan is over 80% of the value, we have to carry this type of coverage. That’s O.K. though. I think it’s a necessary evil.