Mortgage protection insurance

[law87]

have anyone heard of this? do you have any thought into it? sound like a scam to me.

[jpcavin]

Mortgage protection life insurance is an insurance plan that is most likely be offered by your bank. Mortgage life insurance is insurance that is typically bought through the financial institution that has your mortgage (like your bank). The amount of coverage that is purchased is the amount of your loan where if something happened to you the bank would be the beneficiary and pay off the loan. In most cases, the policy is a decreasing term where as the years go by the amount reduces as you’re paying your home loan down although the premium you pay stays the same.

Better off buying life insurance. I might consider it only if I did not qualify for life insurace and I have a family. But I would exhaust all my options first.

[alevin]

Hmm, maybe I have something to learn here. My understanding is that UNLESS you put down 20% or more, your mortgage company requires you to carry Mortgage protection insurance. If you don't buy it, they'll buy it for you and roll it into the mortgage-usually much higher cost of the insurance than if you go and buy it for yourself. Once you have the magic 20% equity in the property, you can have the MIP requirement removed and can quit carrying it. that's the way I've always understood it to work.

If regular life insurance is commonly accepted as substitute for MIP, I never have read it or had it explained to me that way. :confused:

[SkyPilot]

http://www.frbsf.org/publications/consumer/pmi.html
What Is PMI?

PMI is extra insurance that lenders require from most homebuyers who obtain loans that are more than 80 percent of their new home's value. In other words, buyers with less than a 20 percent down payment are normally required to pay PMI.

[law87]

ooo thank god i ask u guys! the guy came today trying to make me buy the insurance but i ask him why would i need it if i am in the military. if i die while serving, the goverment would pay for everything but he kept on pressing me to buy it. trying to make me pay extra 75 a mont for something i already have

[burrocrat]

have anyone heard of this? do you have any thought into it? sound like a scam to me.

All insurance, by definition, is a scam. The underwriter must take in enough in premiums to cover indemnities and overhead and profit. That means on average, each subscriber will recieve less than the value they contributed. Although some will hit the lottery.

If an insurance company miscalculates and fails to adequately manage risk, then the risk is simply re-spread among a larger cohort, ie. taxpayers, see AIG.

It's a simple model actually, and a scam.

If you added up all your auto insurance contributions from the day you got your drivers license and had put them in a savings account, then subract the value of succesful insurance claims, where would you be today? Would you have come out ahead on that deal?

[law87]

All insurance, by definition, is a scam. The underwriter must take in enough in premiums to cover indemnities and overhead and profit. That means on average, each subscriber will recieve less than the value they contributed. Although some will hit the lottery.

If an insurance company miscalculates and fails to adequately manage risk, then the risk is simply re-spread among a larger cohort, ie. taxpayers, see AIG.

It's a simple model actually, and a scam.

If you added up all your auto insurance contributions from the day you got your drivers license and had put them in a savings account, then subract the value of succesful insurance claims, where would you be today? Would you have come out ahead on that deal?



yea too bad u need atleast liability to be able to drive legally

[burrocrat]

yea too bad u need atleast liability to be able to drive legally

There's a keyword in their somewhere.

If you added up all the the fines you've paid for failure to provide proof of insurance and compare that with the total cost of all the premiums you've paid to be able to prove insurance, where would you come out on that deal?

I prefer to insure myself, and there are things you can do to mitigate the risk. Like drive $1000 vehicles, if they make it a year you are already ahead on the insurance aspect of it, not to mention the taxes or interest on auto loans.

Of course, that doesn't protect you or anyone else from pianos falling from the sky and ruining your world, but how often do pianos fall from the sky in your world?

[burrocrat]

Insurance will be the new business to be in as soon as they start mandanting coverage. Imagine if all people were required to buy your product that you were gauranteed able to sell at a handsome profit?

Oh, wait...

[law87]

There's a keyword in their somewhere.

If you added up all the the fines you've paid for failure to provide proof of insurance and compare that with the total cost of all the premiums you've paid to be able to prove insurance, where would you come out on that deal?

I prefer to insure myself, and there are things you can do to mitigate the risk. Like drive $1000 vehicles, if they make it a year you are already ahead on the insurance aspect of it, not to mention the taxes or interest on auto loans.

Of course, that doesn't protect you or anyone else from pianos falling from the sky and ruining your world, but how often do pianos fall from the sky in your world?

burro are u encouraging driving without insurance? lol

[burrocrat]

burro are u encouraging driving without insurance? lol

No.

But if you find yourself in that situation, I would reccomend respectfully explaining to the officer who you are and what you are doing, and that you aren't carrying insurance based on your moral requirements not to support graft and criminal enterprise. Then ask for a religious exemption and permission to proceed on your way.

I have this friend, he tells me most often they will chuckle and issue a warning. The two times he has actually gotten a ticket have been relatively mild fines. One of them the justice of the peace waved the entire fine if he could provide proof of insurance by a certain date. It helped that the JP was also the local insurance agent.

He also puts great effort into not being in a position to need, or need to show insurance, caution appears to be a pretty good form of insurance for avoiding accidents and getting pulled over. Who would have thought that? It is so much easier just to pay someone to protect you.

It's a scam I tell you.

[alevin]

Hmm, getting into touchy territory here. The uninsured drunk driver of mega-pickup who fell asleep and hit two other vehicles before hitting my brother and family headon-sure wasn't self-insured. Going to prison (which he didn't, even tho repeat DUI we learned),sure didn't help my brother and family with the major medical bills the other guy couldn't pay-that brother and family had to fork out of own savings.

Not to mention the nearly 2 years brother wasn't able to physically work as mechanic and gain work experience as mechanic on first job out of diesel school, not to mention vehicle damage to only family car.

fortunately his employer kept him on as janitor through that period of time until brother threatened to leave if employer didn't get him back to skilled job he went back to school for post-navy.

But of course most uninsured (self-insured) don't go around drunk driving and hitting innocent families head on on secondary highways.....:suspicious:

[burrocrat]

That is truly unfortunate. And things like that do happen.

Having insurance won't stop bad things from happening or prevent people from making poor choices. It will however make insurance companies rich off the blood trade.

Everyone will pay their due in the end, I would prefer my account is settled by a higher authority rather than the officially sponsored financial organization.

[burrocrat]

If I choose keep an extensive gun collection in my home, should I:

a) carry an insurance policy on it to protect my potential loss? (maybe, but that is a personal choice)

b) require everybody else to carry a policy to protect my potential loss in case they go and do something stupid or have an accident with my gun collection?

Of course option b would be better for all of society as whole so that nobody ever gets skinned knees, although I think some people would unhappy about being required to carry firearm insurance to protect my investment.

But if it makes you feel better to absolve yourself of liability by paying a fee to a crooked organization, then I'll PM you my address.

[alevin]

b, I agree insurance is a racket-the odds are never in our favor-always in the house's favor. when I think of all the insurance premiums I've shelled out over the years...and homeowners I've shelled out, and all the years I didn't need health insurance-didn't even meet the deductible most years early on-when I even had health insurance.....

the odds are will never need the insurance to pay off-but when the need is there, the need is there-same as anybody else playing the odds-you play, you're playing based on the chance you'll need the payoff someday, people pay because even tho the odds are the need won't hit, but if it does, the need will be great. Not everybody who plays wins (ends up needing the payoff and getting it).

I agree we shouldn't be needing insurance for the routine stuff including routine health care issues. Got a friend who has always only carried high-deductible health insurance for self and kids-she couldn't afford more as single mom-and she's an insurance agent herself.

I've got a friend who declined to get Longterm Care insurance-plans on self-insuring when the time comes-but he also manages a family trust (an old banking family from 19th century-he didn't need to save it all in his one lifetime).

[law87]

No.

But if you find yourself in that situation, I would reccomend respectfully explaining to the officer who you are and what you are doing, and that you aren't carrying insurance based on your moral requirements not to support graft and criminal enterprise. Then ask for a religious exemption and permission to proceed on your way.

I have this friend, he tells me most often they will chuckle and issue a warning. The two times he has actually gotten a ticket have been relatively mild fines. One of them the justice of the peace waved the entire fine if he could provide proof of insurance by a certain date. It helped that the JP was also the local insurance agent.

He also puts great effort into not being in a position to need, or need to show insurance, caution appears to be a pretty good form of insurance for avoiding accidents and getting pulled over. Who would have thought that? It is so much easier just to pay someone to protect you.

It's a scam I tell you.


must be a talker! lol i only knows how to talk to girls not how to talk to cops :laugh:

[burrocrat]

Disclosure: If the market spikes down on the open tomorrow I will own shares of Berkshire Hathaway class B. They own lots of cool stuff like trains and Geico insurance. I love them commercials.

Maybe this thread will do some good, cause folks to evaulate and purchase appropriate levels of coverage (ideally from Geico).

[SkyPilot]

Oddly enough... GEICO is Government Employees Insurance Company... GEICO! :)

http://en.wikipedia.org/wiki/GEICO

[crws]

Oddly enough... GEICO is Government Employees Insurance Company... GEICO! :)

http://en.wikipedia.org/wiki/GEICO

yea, and that's one of the 50 questions they ask you when putting together a rate package!
- if you're USG employed, and which branch.
And who owns them?
Mr Charisma, Warren Buffet.
Along with a good portion of the public employees uniform manufacturing companies.

[law87]

Oddly enough... GEICO is Government Employees Insurance Company... GEICO! :)

http://en.wikipedia.org/wiki/GEICO



still love usaa for insurance :)

[burrocrat]

still love usaa for insurance :)

still hate insurance.

[law87]

still hate insurance.


lol of course