Why do you want your sister to have the house OR why should YOU pay so she can get the house for free?
If she has no financial or emotional attachment to the home she can just sell it when you die and cash out whatever is left. If you have low to no equity she could even theoretically walk away from it and let the Bank worry about it with no credit affect to her. if she wants to keep the home she could just continue making payments and refinance the loan in her name. That way she can keep the home but doesn't get it Scott free out of your pocket every month. Thus I don't think it's needed for a single owner like yourself.
IF though you really want to give her this gift, you'll get much better value in just buying a term life insurance policy for yourself. If you owe 100k on the home over the next 10 yrs, buy a 10 yr level term life policy for $100k and mandate that it goes to payoff the mortgage. You're premium will be much cheaper.
Hope that helps.
CRAP plans. But to find out, do some shopping. It would be much cheaper to do a term life insurance policy. And disability insurance if you get hurt.
They are crap. If you need life insurance protection, buy REGULAR life insurance. If you need disability insurance, buy that. As far as who gets the house if you die, you need a WILL to handle that matter.
I recently bought a house and keep getting offers in the mail about mortgage protection. They say if I die or lose certain limbs they will pay off 100% of the principle amount and 50% if they are "less important" limbs.
Do those actually pay up? I'm single so I'd like my sister to have the house if I should get in an accident and die(she lives with me).
I think it's something I should get but I don't want to get scammed or pay $30 a month for nothing.
