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Maurice Said:

What type of Life Insurance is best for my husband and I? (We just purchased a home, we are both 23 years old)

We Answered:

This is a tough question, but this is Yahoo! Answers, so I'm here to help.

First, bankrate.com is a well-known, excellent website that has a calculator for this (see below).

If your insurance agent is "pressuring" you, I surmise that he/she is not acting in your best interest, but rather, his/hers. Purchasing life insurance, while prudent, is something that should be done with an advisor whom you trust completely and feel zero pressure.

For more information, please visit your state's insurance department website. They provide objective information that will assist you in your purchase. Attached is a sample for the state I live in, Texas. Good luck, my young friends!

Holly Said:

pro and con of credit life insurance on mortgage?

We Answered:

Pro: It protects the lender in case something happens to you.
Con: It protects the lender in case something happens to you.

It does very little for you as a borrower. Most borrowers who purchase it don't really understand what they are buying, or what it does. If you feel like your family needs some sort of protection from something catastrophic, then buy a term life policy.

Gene Said:

If a homeowner had purchased Private Mortgage Insurance, because she made a less than 20% down payment,?

We Answered:

The house belongs to her estate. The executor of her estate will have to sell the house, as part of probate.

If someone "takes over" mortgage payments, that doesn't mean they own the house - it's STILL owned by her estate.

PMI doesn't change - it's part of the mortgage payments, until the equity in the house hits 20% or the house is sold (which includes, foreclosed upon and sold).

The loan amount on the house doesn't change. Either it gets paid, or the bank forecloses. If the house goes into foreclosure, the PMI will pay the bank the difference between the loan balance and the amount the house is auctioned off for. You, or the estate, won't ever see a penny of anything that the PMI covers.

Jacob Said:

What type of Life Insurance should my husband and I get. We are both 23 and just purchased a home.?

We Answered:

Personally, I own a 30-year term insurance with $500,000 coverage and only pay about $48/month for it. I'm 24 right now and bought it when I was 23. So when I become 53, I hoping that most or all my financial obligations are paid off and that I have accumulated lots of money in my Roth IRA. If I still need life insurance at age 53, I can decrease my coverage amount to my family needs. At age 53, I shouldn't be thinking about life insurance. I should be thinking about whether I have enough saved toward retirement? I don't want to back to work when I retire. That's why I buy term and invest the difference.

When you buy term, you are also suppose to have extra money left over to save toward retirement. When you buy whole life, you don't have any extra money because whole life is very expensive. In whole life policies, rate of return on savings is very low and if you want to use it, you have to BORROW it. Do you like to borrow your own money and pay it back?

That's why I choose term insurance. Why should insurance have a savings plan attached to it and that when you die, your family only has access to the face amount and not the savings? So, if you want your family to have the best of both worlds, buy term and invest away each month.