Options For Single People with No Minor Children

[fed up]

Why do you say not to pay the mortgage balance?

Or should they meet with a reputable financial advisor?

I'm just saying it would suck to know someone (in their moment of grieving and irrational thinking) blew aunt ednas mortgage protection money on a first class trip to Maldives for 2 weeks then came home to a house they couldn't afford thus effectively negating aunt ednas intentions/hard work paying those premiums.

I say not to pay the mortgage off right away because houses can be sold and sometimes that takes a few months to remove everything that Aunt Edna stashed away. If you pay the entire amount off the money is gone. If you make the monthly payment there is a balance which can be used for paint up/fix up in order to get the home sold.

 

[Newby]

From what I understand not all funeral homes will accept life policies to pay funeral costs because they don't want to wait for the claim to process and be paid out or possibly be denied. They want the money upfront.

But idk I've never encountered this situation

Hardly any funeral home will accept a contestable policy. Its too risky for them. Any non contestable policy they will assign and have their money within hours so those are no problem.

 

[Newby]

I say not to pay the mortgage off right away because houses can be sold and sometimes that takes a few months to remove everything that Aunt Edna stashed away. If you pay the entire amount off the money is gone. If you make the monthly payment there is a balance which can be used for paint up/fix up in order to get the home sold.

Also many mortgages have credit life insurance on them and possibly pay off the balance. You want the verify that first.

 

[LostDollar]

Paid and arranged 4 funerals in last 10 years and it is no fun. Did not have to worry about cost to the funeral home because of in place life policies. Would I have needed the money in excess of the cost I am sure I could have waited the additional week or so to receive the balance so I did not have to pass the hat at the service. I would also advise any DB recipient to NOT pay the balance of a mortgage right away, use the money from a Mortgage Protection plan to continue the monthly payments as you contemplate the next step.

From this and other posts, it sounds like you have had quite a roller coaster ride with family health issues over the last few years. I hope your life, health and time use are being able to get back on a more even keel now.

(excellent points in the house post I would not have thought of. )

 

[Allen Trent]

Also many mortgages have credit life insurance on them and possibly pay off the balance. You want the verify that first.

I would say that very few have mortgage life tied to the loan. If they do, it is rare & likely accidental death only. Seems to have went away 10-15 years ago when lenders got caught adding the entire cost of the insurance up front as a lump sum on the loan & charging interest on it.

 

[Allen Trent]

want to leave the house to their minor kid

Unless they deed the house to a trust, people are leaving their property to probate, which 1st pays all creditors, not just the bank holding the mortgage. So, car loans, credit cards & final expense hospital bills will receive the house before children will