If you have a mortgage on your home in town,
you have probably gotten several offers from insurance companies that sell
coverage to pay off your mortgage if you die unexpectedly. Insurance is a good
idea in most cases, however, mortgage insurance is usually a poor value.
If you read the large print, it looks like the policy will protect your
family if you die before your mortgage is paid off. All you have to do is fill
out the paperwork, have a physical exam, and pay a little more each month. The
fine print, however, may limit the coverage to accidental death. If there are
two people on the deed of trust, the policy may pay only half if one of them
dies. If you are considering mortgage insurance, call a good insurance agent
before you send in your forms. Insurance experts usually advise against separate
policies to cover various contingencies. A regular term life insurance policy
equal to the amount of your mortgage will probably offer you a lot more coverage
for your money.