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if i have already a Term Life Insurance for 1 M do i need to keep my Mortagage Insurance? can i cancel my MI?
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Diane 8:02 pm on December 15, 2009
Mortgage insurance is almost always a bad deal. You can get a comparable amount of term insurance for cheaper.
So if your insurance is enough to cover your mortgage and all of your other debts, it is enough.
Miss V 8:02 pm on December 15, 2009
Depends on what you call mortgage insurance. If you were led to purchase the mortgage insurance and make the mortgage company the beneficiary, then, you should change that. You likely only purchased enough to cover the mortgage, and it’s likely a decreasing term policy: meaning that you are paying the same amount for the 30 year period, while the amount of coverage is decreasing.
Make sure you’re not confusing this with PMI, private mortgage insurance, which you usually have to keep paying until you own at least 20% equity in the property.
Best of all, sit down with your insurance company and get a thorough checkup for everything, including your health insurance, coverage for your children, nursing home coverage, etc. so that you have a true financial picture of your family’s coverage.
Josh Perrington 8:02 pm on December 15, 2009
Miss V said it perfectly!
Please make sure you’re not confusing MI with PMI. Depending on your mortgage situation you may be eligible to refinance our of PMI (if you’re paying now).
Your Insurance Planner will be happy to sit down & assess your needs. Don’t be skeptical in talking with them – he/she will have your best interests in mind.
BTW – I’m a Lender & would love to talk if you need answers on PMI…
Hope that helps & Warm regards,
Josh Perrington
Josh@GatewayLoans.org
mbrcatz17 8:02 pm on December 15, 2009
They’re two different things. If you’re expecting the beneficiary of your policy to pay off your house of you kick off, sure, go ahead and cancel the MI.