I want a mortgage life insurance plan

Tim, I appreciate where you are coming from, however I would ask you to look at a bigger picture. You have your first child on the way...do you intend to pay for any sort of education for your child? How do you intend on raising your child? Is your wife going to work along with you and the child goes to a day care for a few years before school? Without you, your wife will definitely work and although she does not need to pay a mortgage again, she will need to do something to take care of your child while she works.
An example: A guy was making a good living, so good his wife didn't work and took care of the 3 kids. They both had life insurance in place. His wife came down with terminal cancer and passed away a year or so later. The kids were still young and needed some sort of care. The youngest two hadn't even started school yet. Because of the life insurance, the father was able to hire a nanny and keep their way of life as stable as possible.
Without the life insurance, even though the father made a very good living, the children would have suffered not only the loss of their mother, but they would have suffered major life alterations. No staying at home. In fact due to the cost of child care coming out of his salary, they would have had to move.

So although you may have everything else lined up and you didn't offer up enough information to do a true analysis of your needs, I ask you to look at a bigger picture. Insurance is cheap when you compare it to real life events.

Brian,

You neglected to answer the man's question.

He said, " So I just want one of these mortgage life insurance policies that will pay the mortgage off in the even of my death. No more."

He wanted to know what size premiums he could expect given a current $300,000 balance (assume a 6% rate).

Thanks for your help,

John

John,

Thank you for your reply, however like I said previously, there really is not enough information given to give a good answer. Sure, we can make assumptions like he has a 30 year mortgage etc., but what if he has a 40 year mortgage?

What if he only has a 15 year mortgage? Would a 20 year term be the answer?

Without meeting someone personally, I am not going to ever offer a dollar amount. Sure if in person, he answers all these important questions, and the need is really only to take care of the mortgage, then I would give him an amount.

I'm with Brian on this one.

A person just walks into the doctor's office, tells the doctor he has acid reflux and wants a perscription.......

How many doctors are just going to pull out the pad and write the script?

Likewise, financial advisors are often met with peope who say "this is all I want/need", and it is our duty as financial professionals to say "hang on here, let's think this through".

This profession is funny.

People read Motor Trend, but they don't try to fix their own cars.

People get on WebMD, but they sure don't try to set their own fractured arm.

People watch Bob Villa, but they hire contractors.

People watch Deadliest Catch, but still go to Red Lobster to actually eat lobster.

But when people watch Dave Ramsey, they instantly think they know more than the financial professional.

Absolutely wild.

Tim, do yourself a favor, find a professional to help you determine what you really want in terms of death protection.

Andrew, I couldn't agree with you more....

This profession is absolutely funny.

For all the good Dave Ramsey does, I tend to believe he hurts our profession at least as much. His show really is just one big commercial for his company and himself. Take a look at his website, I honestly don't understand how he can get around compliance. The company I represent would never in a million years allow me to have a website anything close to that!

Brian,

He doesn't answer to compliance, because he is NOT A FINANCIAL PROFESSIONAL. He is a celebrity.

His system for getting out of debt is absolute dynamite.

I am less enthralled with his other ideas.

You know, even if we are using Dave as the example, he would also NEVER recommend you only buy enough insurance to pay off the mortgage. 10 x's your annual income is what he recommends.

I believe there are more factors to consider, but that is besides the point.

I am really interested in Tim's thoughts on why he wants to "just pay off the mortgage, no more..."