Is Too Much Protection Even Possible?

Physician's Money Digest, September 2006, Volume 13, Issue 9

Money

Money

Wearing a raincoat and carrying anumbrella can help keep youdry in a rainstorm. Puttingon two pairs ofsocks before yougo skiing can helpkeep you warm. Butbuying mortgage insuranceon top of lifeinsurance may be too muchprotection. If you are aphysician who has a heftymortgage, paranoia to protectyour family may sway you topurchase mortgage life insurancethat pays off your balance if youdie. A recent article in magazine recommends you ignore thaturge. Due to expensive mortgage life insurancerates and the possibility of higher premiumsevery 5 years, you would be betteroff increasing the coverage of your term lifeinsurance policy and paying a lower ratewith premiums fixed for 10 years. Thiswould also give your family more flexibilityin deciding the best use for the money theyreceive, which may not necessarily be themortgage. However, because mortgage lifeinsurance generally doesn't require a physicalexamination, agrees youshould consider its purchase if you feelyour health would negatively affect yourqualifications for a term life policy.