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Douglas Said:

what type of insurance company buys your mortgage and lets you stay and rent?

We Answered:

If the person owns their home (or most of it), then there is what's called a "reverse mortgage", which is where the bank pays YOU a bit of money each month, slowly buying back the house from you.

Rick Said:

Is homeowners insurance in case of death really worth the monthly premiums for this?

We Answered:

You've answered our own question. On both counts. Credit life is a terrible deal, especially if you already have enough life insurance.

Short term disability isn't such a hot deal either, especially if you hae sick pay through your employer.

Long term disability is a good deal. It's usually very reasonably priced. Typically it doesn't kick in for 90 to 180 days so you have to tough out the short term but after that you're home free. The solution here is to have 3 - 6 months worth of income in the bank for emergencies.

Don't confuse PMI with credit life. Two totally different products. If your equity is less than 80% and you're not on a government backed loan (FHA or VA or some state programs) you need PMI and there's no way out of it. PMI protects the lender against your default but pays nothing if you die.

Shawn Said:

Is it a good idea to buy those insurance policies that pay off the mortgage upon your death?

We Answered:

I'd have to agree with the others who have answered: the policy you are considering is a bad deal.

Term life insurance would likely be a better idea, depending on whether your mother is in good health or not. It also depends on how much is left to pay off on the mortgage. If she does have pre-existing medical conditions, there are many policies that you can get that don't require a medical and will pay out as much as $25,000 on the death of the insured, and twice the benefit if she dies accidentally.

Brittany Said:

Are there any mortgage co. that will use life insurance as collatel and let you pay interest only, till death?

We Answered:

I doubt it, they can't foreclose on insurance, and they can not control that the premiums are paid. This is just paper right now, no cash value.