Insurance on the loan - Posted by John.

Posted by GL on December 17, 1999 at 07:32:39:

These insurance plans are a ripoff. Find out what it costs for $40000 worth of term insurance and compare. And remember, as you pay off the loan the amount they would have to pay out in case of a claim slowly declines to zero. How would you like to pay $42 amonth for nine years and six months then drop dead and have them pay you back $1866.12?

Insurance on the loan - Posted by John.

Posted by John. on December 16, 1999 at 18:31:48:

Last week I called my bank and asked for a $40,000.00 loan against one of my property , to pay off another deal that is happening, the loan was approved, and is to be paid off in 10 years, it will be cashed out sometime next week.
They called back today to ask if I would like to get an insurance on the loan, in case that I die, the loan will be paid off.

Cost $42.00 montly for the next 10 years

Please guys any input in this matter or a better alternative
to this issue.

thanks in advance

Re: Insurance on the loan - Posted by Bud Branstetter

Posted by Bud Branstetter on December 17, 1999 at 21:35:56:

Probably the most economical insurance is a 10 year level term policy that is made out to the beneficiary of your choice. The decreasing term that they sell is not going to be economical. Some conventional lenders will ask that an assignment of a policy be done. You still own the policy and they are named as a beneficiary to pay off the loan.