Mortgage Loan Insurance - Not what you think

[runawaytrain]

I'm not referring to the mortgage loan insurance required when you put down less than 20%

I was wondering if anyone has any information on mortgage insurance that allows a spouse to keep a house if the other spouse dies?

We are planning to get a mortgage and I have stepped away from my career where I made much more money to work with children. My husband is still in his career making great money. If he passes away I will not be able to afford the house payment. We are worried about this and was wondering, besides life insurance, is there anything we can do to make sure that I am covered?

[ShanetheMortgageMan]

My wife worked at a company or a short time that sold those types of mortgage insurance policies.  The premiums are usually fairly high on those, I'd recommend you also look into a term life insurance policy as well... then you'd still get the same payout but then can choose to use it to pay off the mortgage or for other things, plus the premiums are almost always cheaper.  What happens if you end up selling your current home before your spouse passes and the mortgage insurance no longer covers anything (and think of all of those premiums you've paid)?

[runawaytrain]

That is true! I didn't think of that.

I need to find a place to research life insurance policies before we go through with this mortgage. 

[ShanetheMortgageMan]

It's tough to research all of the insurance policy options you'd have, I'd recommend you seek out a larger company such as New York Life or MassMutual to start the conversations up.  I've found life insurance agents usually are very patient and love explaining things.  Worst case is you get a free blood test out of it.