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| Questions? Call us at 1.877.743.4240 |
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Also known as:
MORTGAGE LIFE and DISABILITY INSURANCE |
If you own a home and have a mortgage, this is one product that your family should not be without! Check below for more detailed information on the exciting new mortgage insurance products.
Please note this is NOT - PMI or Private Mortgage insurance. For information on those plans please contact your lender or do an internet search with the words: Private mortgage insurance or PMI.
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Here are some of the available features and coverages of our Mortgage Insurance Plans.
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No Medical Exam |
For up to $500,000 of coverage. |
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Pays upon Death |
Helps family to keep your home. |
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Disability |
Helps make mortgage payments upon disability. |
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Critical Illness |
Can help pay your mortgage in the event of critical illness such as stroke, cancer, or heart attack. |
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Terminal Illness |
Access your death benefit if diagnosed with a terminal illness. |
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Chronic Illness |
Collect monthly benefits if you can't perform 2 out of 6 of the activities of daily living. |
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Unemployment |
Can pay your INSURANCE premiums if unemployed or disabled. |
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100% Return of Premium |
Returns 100% of your money back if you outlive the mortgage insurance term. |
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Deciding on what plan you'll ultimately use to protect your mortgage and your family will be completely up to you. We can help guide your steps once we know your complete profile which you can submit at any time by completing an Online Form or contacting an licensed agent direct on our toll-free line 1.877.743.4240.
Being forthcoming, sometimes it just makes more sense for you to purchase a simple term life insurance plan to cover your mortgage. This will depend on a number of factors including how much coverage you want, how healthy you are, and what benefits that you would like in a plan. Mortgage insurance plans are typically more expensive than traditional preferred rate term life insurance. Why is this? Well, there are actually very good reasons for it:
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| NO MEDICAL REQUIRED |
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Many mortgage insurance plans do not require you to take a para-medical examination and give blood and urine samples to qualify. In most cases coverage can be secured up to $400,000 of level mortgage insurance coverage without a medical exam.
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| LIBERAL UNDERWRITING |
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Underwriting is basically the process by which your rate is determined, looking at your health, medical history, and other associated factors that will determine your rate. Mortgage insurance plans are typically much more liberal in their underwriting process than a typical life insurance plan. This serves some applicants extremely well as you do not have to be in perfect health to qualify for the plan. Factors including diabetes type 2, hypertension, and obesity will usually NOT affect your mortgage insurance rate. Sometimes, depending on the medical history, age, weight and other factors, mortgage insurance can actually provide a less expensive and more comprehensive type of coverage for the applicant than normal life insurance plans would. We can help advise you on this. |
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| OTHER THINGS TO CONSIDER … |
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While you research and consider what coverage type will be best for you think about how much of your income would need to be replaced if something were to happen to you. Most financial planners suggest a minimum of 10X your annual (for younger individuals 15 - 20 times) income in total life insurance coverage. Since your Mortgage insurance plan would include a life insurance death benefit, it's a good time to review how much life insurance coverage you have.
 Consider your mortgage and other outstanding debts your family stands to inherit if you were to pass. Chances are, even if you have a couple hundred thousand dollars of life insurance, it's far from being enough to cover your debts and provide for your missing income. Remember, if you were to die, not only do you leave your family, but your paycheck leaves your family as well.
It's very easy to underestimate the need of adequate coverage. Many others buy inadequate cheap plans that are simply a bad fit. For example, take a 40 year old buying a 10 year level term policy. Five years into the policy he develops health issues. When he goes to renew his coverage or apply for new coverage at 50 years old he finds out that he can't qualify. Now he has zero coverage (10 year term expired), a big mortgage, and a lifestyle based on the $80,000 dollars he makes a year. He needs the coverage now more than ever but can't buy it at any cost.
These are the things that you'll need to think about before deciding to apply. If this man had paid a little more for his plan he could have easily had obtained coverage for another 10 or 20 years. |
| NOT 'LOCKED IN' |
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Whether you decide to purchase a mortgage insurance plan or a life insurance plan, you can always lower the coverage after issue. You aren't locked into anything so no decision is really 'final'. Again, we're here to help make sense out of how much coverage that you might need, and what type of plan you may want to apply for. At the very least, a mortgage insurance plan will ensure that your family will not have to use up all, or most of your existing life insurance benefits just to pay for your mortgage. Your life insurance can still be used for whatever it is that you had it earmarked.
To put mortgage insurance in perspective it's helpful to know what it was (years ago) and what it is (today). |
| THE HISTORY OF MORTGAGE INSURANCE |
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| THE OLD MORTGAGE INSURANCE PLANS (8+ years ago) |
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Traditional mortgage insurance was once offered at the closing by the mortgage lender, but in most states this is no longer even legally permissible. Were you offered mortgage insurance at your closing? Probably not.
One characteristic of the older mortgage insurance plans was that the coverage declined with as the mortgage decreased with time. In essence, the insurance was directly attached to, and followed the mortgage. The lender owned the mortgage insurance coverage. The lender was also the beneficiary of the insurance policy. The mortgage holder, (you) paid the premiums. The only benefit a family could receive from the plan would be if the mortgage holder died. In this case, the mortgage insurance company would pay the bank whatever the balance was owed on the mortgage.
Though there was a certain element of convenience in this process the old mortgage insurance products were extremely limited and rather costly when compared to the benefit received. The policies also became outdated because of a number of other factors:
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They were not portable. |
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The banks owned the policies and you can not make changes to an insurance policy you don't own. |
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If you refinanced you lost your current mortgage insurance coverage and must reapply at a higher age. |
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The plans usually offered no option for disability coverage or illness coverage; only death. |
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Premiums remained level while your coverage was decreasing. (Not popular with consumers) |
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The rate was very high for the type of insurance the consumer received. (Again, coverage was going down each year as risk of death went up with age) |
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Change was in the air…
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While Mortgage Insurance has always been a form of life insurance the programs have undergone a revolution which is highly beneficial for today's mortgage holder.
Today it's very hard to find a lender that may offer some variation of the old mortgage insurance plans. This is a good thing. Today's plans have something yesterday's mortgage insurance plans did not; options! The rate and coverage are typically unchanging. The benefits that are available are greater than ever before on today's plans. Here are some of the highlights, benefits, and options that are available on the new mortgage insurance plans. |
| THE NEW MORTGAGE INSURANCE PLANS - better than ever! |
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Now, you own the plan. |
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All mortgage insurance plans are Portable — so you can keep your coverage with no worries if you move. |
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The life Insurance coverage portion of the policies, (or death benefits) are now level. No longer does the coverage decrease as your mortgage goes down. |
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Insurance Premiums can be guaranteed to not change for 30 years for most ages.** |
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Coverage periods are flexible; 15, 20, 25, 30 years, or even for Lifetime. |
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While more coverage is usually better, you can lower your coverage amount to fit your budget. Regardless of what your mortgage amount is. |
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Unlike regular life insurance, mortgage life insurance programs can provide coverage as high as $400,000 without a medical exam. |
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You may also be eligible for supplemental mortgage disability insurance coverage that will help pay your mortgage if you become disabled. |
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Certain mortgage insurance carriers plans offer coverage for Critical Illness coverage — meaning you don't have to die to access the coverage. Cancer, heart attack, stroke, blindness, ALS (Lou Gehrig's disease), renal failure, are examples of this. ** (subject to state availability and state approval of plan) |
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Plans are available with Chronic Illness coverage; meaning if you become unable to perform 2 out of 6 of the standard daily requirements of living (bathing, continence, dressing, eating, toileting, and transferring) without assistance, or with deterioration or loss in intellectual capacity (cognitive impairment), for any reason you'll be covered. ** (subject to state availability) |
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Accidental Death benefits can be added. For a few extra dollars per month you can literally double your coverage. (Pays out more in the event of an accident) |
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Children coverage — coverage is available to cover all children in the family with a death benefit of $5,000 - $20,000 dollars of insurance. |
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Mortgage Insurance often supplements any life insurance or disability coverage you already have through your employer or any insurance coverage you may have already purchased on your own through a private insurance policy. |
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Typically, mortgage insurance is not subject to income verification. |
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The underwriting (approval process) for mortgage insurance is usually more liberal than for many standard life insurance plans and allow for imperfect health and less than perfect height and weight ratios, BMI, cholesterol levels, hypertension and more… (Consult one of our agents for a full opinion) |
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| THE BEST CHANGE YET TO MORTGAGE INSURANCE PLANS |
| RETURN of PREMIUM ! |
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The best and most welcome change to mortgage insurance was the addition of plans that return 100% of your premium if you don't use the mortgage insurance! Pay for you coverage and don't use it — and simply get all of you money that you paid for the security and coverage back to you in full — Tax free! Now what could be better than that!?
 Today's mortgage insurance are not only completely affordable, they may be tailored to meet your family's needs. This makes Mortgage insurance not only beneficial, but also essential. If any of your questions were not answered here please feel free to contact us. Remember that not all plans and benefits are available in all states. Your licensed representative will be able to discuss this with you. Please feel free to submit a form if you haven't already done so and let us review your profile and make some recommendations. Typically, it's always good to have a brief conversation after doing so to ensure that you and our placement agent are on the same page and can make the proper recommendations for obtaining a mortgage insurance plan that you want with the proper benefits and tailored to your budget. If you prefer contact through email only and leave your phone number blank please realize that priority will be given to incoming calls and forms that are filled out completely.
For a sample of rates please view our sample rates pages which are designed to show you what some of the plans cost. Also note that our representatives are state licensed insurance professionals and not tel-marketers. They will never call you at weird hours and honor the fact that you are under no obligation to purchase anything. |
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