Way Overpriced

Hear Dave say why you shouldn't go with the mortgage insurance offers that pay off the house if you die.

QUESTION: Blasha just bought a house and has been getting different mortgage insurance offers that say they will pay off the house if one of them dies. Should she take advantage of that? No way, for one reason, says Dave.

ANSWER: No, not unless you are uninsurable. Mortgage insurance is about 5 times as expensive as the same amount of term life insurance that you could buy and use to pay off the house if you die. Have 8 to 10 times your income in term life insurance.