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Ian Said:

I have some mortgage life insurance. If the mortgage has changed is the insurance still good.?

We Answered:

If your question is, is the policy still in force, the answer is yes. The policy stays in force regardless of what happens with your mortgage.

In fact, it is important to realize that there is no such thing as "mortgage insurance" at least not in the category we're talking about. What it really is, is decreasing term life insurance. The product was created to somehow mimic the way a mortgage goes down when you pay it down over time. It was then marketed as "mortgage insurance."

The best thing for you to do is to figure out how much insurance you need and buy that for whatever period of time makes sense. Use the following format to figure out how much you need. There are lots of others, but this one can work in a pinch.

L - Loan payoffs. This includes mortgages and other loans including student loans, auto loans, and credit cards.

I - Income Replacement. Figure about 5 years since you'll be debt free.

F - Final Expenses. Figure anywhere between $5000 to $15000 depending on if you want to go in a pine box, or if you want a song and a sermon.

E - Education. Factor this amount into how much you want to help either your children or your surviving spouse to get education. If a spouse has been out of the work force for a while, education becomes a factor, that is if they plan on going back to work.

There you go. One of many formulae to figure out how much life insurance you need. Next, figure out how much you can afford and how long you need it. You're there!