WHAT IS A MORTGAGE PROTECTION POLICY?
- After buying a home, condo, townhouse, mobile home, investment property, or commercial property, as a borrower you have substantial mortgages that will remain unpaid if insurance is not provided to leave these properties free and clear for your heirs after death.
- A Mortgage Protection Plan will pay your mortgage note if you become disabled due to an accident or illness or if your employer lays you off. Statistics show 12 in 100 die before paying off their home, while 48% of all foreclosures are the result of disability.
- A Mortgage Protection Plan offers much more. Please review the other benefits available to fit your specific needs:
- Death Benefits to Cover Mortgage Balance.
- Refund of Premium at end of policy period.
- Unemployment Protection.
- Disability Protection.
- Critical Illness Rider (advances 75% of death benefits).
- Mortgage Co-Holder Protection.
- Accidental Death.
- Spouse Rider.
- Child Rider.
WHAT IF I DIE?
If you die, your mortgage pays a death benefit that can be used to help pay off your mortgage. This peace of mind means that your family may keep their home and their way of life, in the event you die.
WHAT IF I LIVE?
With the optional money back rider, all the premiums you pay will be refunded to you at the end of the coverage period. As a bonus, you may receive part of your premium back!
WHAT IF I BECOME DISABLED?
Disability Income Rider
The optional Disability Income Rider provides a monthly benefit calculated to be roughly equal to your mortgage payment each month for up to 24 months after the insured has been disabled for 90 days.
Disability Income-Accident Rider (Level Term Only)
The Accident Only Disability Income Rider provides a monthly benefit calculated to be roughly equal to your mortgage payment each month for up to 24 months after the insured has been disabled for 90 days, for any sudden, unforeseen and unexpected event which occurs without the insured’s intent that results in the total disability of the insured.
WHAT IF I AM DIAGNOSED WITH A CRITICAL ILLNESS?
- The Original Critical Illness Rider provides for a lump sum payment if the insured is diagnosed with a covered critical illness.
- It is suggested that the benefit amount purchased be roughly equal to 12-24 months of mortgage payments, however, the benefit amount purchased can be up to 100% of the mortgage face amount.
- This ensures there is money available in the present to ensure that the quality of your life is not severely altered.
WHAT IF I BECOME UNEMPLOYED?
- The Unemployment Rider is provided with every mortgage purchase, subject to state availability.
- A Mortgage Unemployment Rider provides you with peace of mind in the event the insured involuntarily loses his/her job subject to the rider’s terms.
- Your mortgage premium payments may be made for you for up to six months after a one-month waiting period.
WHAT IS THE ACCIDENTAL DEATH BENEFIT?
The Accidental Death Benefit Rider allows receipt of an additional death benefit of 50% of the face amount, up to $125,000 in the event of certain accident-related deaths of the insured. The total amount cannot exceed the face amount of $250,000, whichever is less.
WHAT IS THE ULTIMATE INCOME RIDER?
This allows you to designate how your death benefit is to be paid.
WHAT IS THE SPOUSE AND CHILD RIDER?
These riders allow you to include your entire family so that this singular policy can act as a consolidated product covering all your life insurance needs under one policy.
HOW MUCH DOES IT COST?
This plan is one of the most competitive life insurance products on the market today. There are a variety of options that provide levels of protection that may be tailored just for your needs.
SAMPLE DEATH BENEFITS RATES BELOW:
WHAT ARE MY ODDS OF SOMETHING HAPPENING OVER A 30-YEAR PERIOD?
- 1 in 100 - will lose his home through fire;
- 12 in 100 - will die before paying off the mortgage;
- 1 in 8 - will become disabled each year;
- 48% of all mortgage foreclosures are the result of a disability;
- Between the ages of 35 and 65, seven out of ten people will become disabled for three months or longer.
WHY SHOULD I BE AWARE OF THE BANK OR LENDER OFFERING COVERAGE?
- It is customary for banks and loan companies to add credit life when processing property loans. Please be aware that these policies are limited to only protecting the bank’s interest and not yours.
- The bank normally becomes the owner and beneficiary of such policies that may be conveniently added into their note. The recipient of the property loan has very little say-so regarding the proceeds of the policy and named beneficiary if death should occur, which causes possible property tax ramifications and forced heirship problems.
- Owning your own policy gives you the right to:
- control and assign the proceeds to whomever you wish,
- transfer the policy to another loan, or
- add another loan to it and convert the policy if your mortgage is paid off.
- The bank policy cancels the mortgage giving you no options, which is dangerous, especially if you are uninsurable at the time.
HOW CAN I APPLY?
It’s simple and convenient. The application is easy to understand, with just a few basic health questions. For most policy amounts there is no medical exam or blood work required. click here to request a quote or call 504-441-RATE(7283) and ask for our Life and Health Department Specialist.