Should you get a mortgage life insurance policy?
When you take out a mortgage, you’re taking on a debt. Your mortgage needs to be paid every month or you risk losing your home. If you have dependents who rely on you and your income, it’s a good idea to get a life insurance policy.
How important mortgage insurance is depends on your situation.
If you’re single, with no dependents, and you live alone:
It’s not needed. If you die, the bank takes over your home.
If you have dependents who require your income:
You should probably get mortgage insurance. The mortgage payment is a major expense for almost all families. You’ll want to have at least 10 times your income in life insurance coverage.
If you already have 15 – 20 times your income in life insurance:
You don’t need additional coverage from a mortgage insurance policy.
There are many reasons for getting a life insurance policy. Taking out a mortgage is one of them.