Insurance - Mortgage and term insurance ?

hi guys. i posted this question in the real estate and mortgage forum not realizing there was an insurance forum. sorry about that.

anyway, is it a good idea to get term insurance to pay the mortgage in case something bad happens to me? currently, the only insurance i have is AD&D which only pays out 8x my monthly income.

if my property is worth 170k, how much term insurance should i get?

and should i decrease the value of the coverage of the insurance every year since the balance in the mortgage decreases too?

if term insurance is not a good idea, what's the alternative? one that would ensure that the benefeciary will not have problems with the mortgage.

thanks guys.

You are better off getting term insurance for yourself rather than mortgage term insurance. In most cases the premiums are very similar but the benefits for the mortgage insurance decrease as you pay down your mortgage. The amount you decide on is up to you. Look at your entire investment portfolio and other outstanding debt. Keep in mind that many insurance brokers will try to "overinsure" you so once you decide on an amount stick with it.

What amount of money is needed if you died today? Ask your wife how much money she'll need if you died today or within the next 10/15/20 or 30 years. So she gets a check to pay off the house. Then what? Any other debt, income replacement, children?

The most basic formula I use is that you need 10x your annual salary in life insurance. It's pretty basic but usually quite accurate unless you have a really large family and small household income.