Since I moved into a new house in August I have received no fewer than 3 offers in the mail to solicit my participation in a program to “protect” my mortgage using life insurance. The idea is a simple one. You buy a life insurance policy, or similar insurance product, that will provide the funds to your survivors for the amount of your mortgage in case you should meet your demise prior to paying off said mortgage.
The interesting thing is that each of these offers has pretty detailed information about my mortgage including the bank with whom it’s held and the current amount outstanding.
The funny part is that one of the offers came from my insurance company. The very same insurance company I already have life insurance through! Why would I want an additional policy to cover my mortgage?
The frequency of these offers leads me to wonder if the up-sell of using life insurance for mortgage protection is on the Rise?
Not that there’s anything wrong with doing so. The problem with the whole idea is that paying off your mortgage is one of the reasons you get life insurance to begin with, whether you opt for term life insurance or whole life. So, again, why would I want an additional policy for that?
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I’ve noticed an increase as well, although (thankfully!) none of the solicitations have had any real detailed info about my mortgage. And based on the rates being quoted, these policies are some of the worst deals going.
[...] a month ago, I posted about offers for Mortgage Protection Using Life Insurance being on the Rise. Well, today I received yet another offer. This time from the Mutual of Omaha Insurance [...]