Let’s look at a scenario. If anything happens to you while paying off your mortgage in, say 7 years, your family is covered by a term-life insurance policy.
You buy a 20-year $1 million term-life insurance policy at $20 per month. After setting up your mortgage payment schedule to stay on track, you have the above insurance in place, as a precaution.
$20 is not a lot of money; you spend more than that eating out or playing the lottery. If nothing happens during the 7-years you pre-paid your mortgage to $0.00, all you spent on life-insurance is $1,680.
Would you consider this a bad investment in lieu of getting $1 million in the event your family needed it?
You are now mortgage free and you still have 13 years to continue paying $20 monthly premiums ($3,120). Do you believe it would be impossible to invest enough money for a comfortable retirement during your remaining work years? Unlearn all you know about getting out of debt.
