One of the ways that Banks make money is they charge us life insurance on our mortgage. When you think about this idea it is sound, my mortgage is paid off when I am dead and no one has to worry. The unfortunate side of this is that we tend to pay 3-5 times what we would normally pay to an insurance company for the coverage as most banks charge us a percentage of our mortgage.
As an example: one of my clients was paying $129 on a $260,000 mortgage. When we shopped around we found her a life insurance policy for $500,000 for $30. Now you do the math on the savings, that's $99 a month or almost $1,200 a year!
If you feel better knowing that your mortgage will be paid off when you are gone then consolidate that amount with your normal life insurance to get the best rate.
As always we can help centssavvy.com or email us
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