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Learning, Sharing, and Teaching => Ask a Mustachian => Topic started by: gbbi_977 on March 26, 2015, 07:57:41 AM

Title: Bought a Condo - Life Insurance?
Post by: gbbi_977 on March 26, 2015, 07:57:41 AM
Hi forum,

Just registered so I could pick your mustachian brains about this.

My husband and I have just bought a condo. We've lived here for a year as tenants, and the owners offered to sell it to us. We love it, and got it for a good price as no agents were involved. (I know condo-owning is controversial here, but we're committed to it and happy!)

We are doing a private mortgage with his parents - seems like a win-win, and it means the interest payments stay in the family.

We'll have owners title insurance (seller pays for that I believe) but no lenders title insurance (told it's not necessary due to having OTI, and private lenders don't require it. Correct me if I'm missing something there?)

But his parents would like us to get a term life insurance policy for peace of mind. I'm highly qualified but not planning on working for next few years as we raise kids. DH is sole bread-winner currently, so for that reason we feel life insurance is probably a wise move.

Does anyone have any advice on obtaining a straight term insurance policy compared to a 'return of premium' policy (where if you stay alive for the 20 years of the policy, you get the premiums paid returned to you?)

Also, any frugal but comprehensive life insurance companies people would recommend?

Thanks muchly!
Title: Re: Bought a Condo - Life Insurance?
Post by: JoJo on March 26, 2015, 11:36:37 AM
You can get plain 20 year term pretty cheap.  The Return of Premium feature will up the premiums significantly, as you will be paying for both the death benefit protection + the cash back option. 
Title: Re: Bought a Condo - Life Insurance?
Post by: arebelspy on March 26, 2015, 11:43:10 AM
You should probably have it anyways. Term20 should be good, and cheap.
Title: Re: Bought a Condo - Life Insurance?
Post by: jzb11 on March 26, 2015, 01:19:50 PM
Term all the way. Return of premium is a scam. If you bought term and invested the difference you'd come out way ahead.
Title: Re: Bought a Condo - Life Insurance?
Post by: frugaliknowit on March 26, 2015, 01:53:52 PM
Echo JZB11.
Title: Re: Bought a Condo - Life Insurance?
Post by: La Bibliotecaria Feroz on March 26, 2015, 05:53:19 PM
You can compare prices on term insurance at zanderins.com, which is what we did. You should definitely have insurance in place on him before you quit your job, and on you when you're pregnant (if not before).