Insurances on second mortgage

jbarto65 · Joined: 04 Nov 2007 Posts: 623 -0.20 Dollars($)

When you take out a second mortgage should you take out all the same insurances that you have on your primary mortgage, like the life, accidental death or disability insurance? Are all the same insurances available for the second mortgage that is available for the primary? How do insurance companies view this?

jameshogg

Hi Jbarto,

As much as I know, one can apply for similar insurance policies for both mortgages but it depends as to whether one can afford paying premiums on both. The accidental benefit or disability insurance is a coverage that comes along with the life policy if you ask for it.

You can refer to an earlier discussion on mortgage insurance and get an idea of what type of policies one can apply for.

Thanks

Niicss · Posted: Fri May 02, 2008 3:15 am Post subject:

Hi Jbarto,

You can get insurgences for the second mortgage also but I do not feel that you need to pay insurances premium for both the mortgages.

gmakerley · Posted: Fri May 02, 2008 2:59 pm Post subject:

i suggest you speak with an insurance agent.

life, disability and other types of insurance you can get on a mortgage cover only the mortgage - there is no side benefit to your heirs. you can obtain a (probably) cheaper life insurance policy that will not only allow your heirs to pay off the mortgage(s), but also allow for additional money, which is what the purpose of life insurance truly is to begin with.

kpatrick · Posted: Sat May 03, 2008 8:30 pm Post subject:

I agree with George on this one. Generally the policies that only cover the mortgage are a rip-off IMHO. You can get a term lime policy for less and it will probably be for a larger policy. Check with an insurance agent and they will be able to guide you.

All times are GMT - 7 Hours

Page 1 of 1