What type of home-owners insurance will pay off my mortgage if I die or lose my job?

Question

What type of home-owners insurance will pay off my mortgage if I die or lose my job?

Answer 1

No homeowner's insurance will pay for that. You will need life insurance. Also there is no plan that will pay your mortgage if you lose your job.

Answer 2

Nothing will pay off your mortgage if you lose your job, but mortgage protection life insurance will cover it if you die. Mortgage protection life insurance is a type of term life insurance that covers you for a certain number of years, often the same number of years as are remaining your mortgage. The death benefit coincides with the mortgage amount, so that the policy will pay off the balance of the mortgage should you die before the loan is paid off. If the mortgage balance is less than the death benefit, then the additional money will still be paid to the beneficiary. Typically, the policy has a guaranteed, or set, premium. A variation of mortgage protection life insurance is known as mortgage cancellation insurance. It also is a term life insurance policy payable upon the death of the borrower, however, instead of paying a set benefit, it covers the declining balance of a home loan.

Answer 3

None.  Life insurance will pay if you die.  But nothing pays if you lose your job - you just have to plan for that.  It happens, ya know!!

Answer 4

Life insurance pays if you die.  No insurance is going to cover you against loss of income.

Answer 5

Homeowners insurance cannot do this.  But life insurance is a nice solution!  Buy a term life policy for the amount of your home (or mortgage) and name your significant other (or a parent, or whoever woud inherit the house) as the beneficiary.  If you pass away, and they're stuck with the house + the mortgage, the life insurance policy will fund the payment in full.

Answer 6

No homeowners insurance will do that.  You would need a separate mortgage insurance policy covering those issues.

Answer 7

People try to sneak credit life insurance into car loans (had than happen more than once, but caught it) and try to entice you into it for credit cards.  But I have not heard of credit life insurance for a mortgage (although, it may exist).

Regular life insurance would make more sense and likely less costly.  Credit life insurance only pays what you owe, but regular life insurance pays a set amount regardless.