Your home may be your most valuable asset…Don’t take a chance on losing it
An unseen death can quickly put your home at risk. If your income suddenly stopped, that valuable asset could be lost. What would your family do if you were forced to leave the family due to economic hardship caused by death, disability, or illness? Protecting your home with mortgage life insurance to pay the balance of your mortgage in the event of premature death is a smart move to make. It is easy to do today with policies that are easy, fast and affordable. These policies are specifically designed to protect your mortgage and your family from the financial devastation that can come with premature death due to natural causes or an accident. You name the beneficiary for the policy.
Many companies offer optional benefit provisions with the death benefit
- Monthly disability income rider.
- Disability of waiver of premium rider
- Critical Illness rider
- Accident only disability income rider
- Coverage for spouse
- Coverage for children
Disability income riders pay a monthly benefit that can help make your mortgage payments if you become totally disabled due to a covered sickness or accident. You can include both sickness and accident or accidental only to keep the monthly premium smaller.
A disability of waiver premium rider pays the premiums if you become totally disabled for the life of the policy.
Critical illness pays a lump-sum benefit upon the first-ever diagnosis of a covered critical illness, such as cancer, heart attack or stroke. In some cases the benefits do not decrease the death benefit and if you have more than one critical illness you may receive multiple payouts.
The coverage for children provides term insuance to age 25 for each child plus the option to purchase permanent life insurance on the 25th birthday (or when the rider terminates) your children are guaranteed permanent life insurance, regardless of their health at that time.
What is “non-medical”
Policies can be issued without a life insurance physical being required up to $500,000 for term products of 10, 15, 20, or 30 years. These policies may be more costly depending on the client’s age since they cover many medical conditions and have a higher cost to cover these conditions. However, in some cases they can actually be less expensive than a fully underwritten insurance plan.
Terminal illness and Accelerated benefits
Most of these plans come with either a Terminal Illness or Accelerated benefit provision built into the policy. Terminal illness is defined as being diagnosed with a life expectancy of 12 months or less in some cases 24. You may receive up to 100% of the death benefit depending on the company you have your policy with. Accelerated benefits allows you to receive advance payment of the death benefit if you are diagnosed with a terminal illness or require permanent care in nursing facility. This is not available in all states.
If you move your policy moves with you
The policy is not locked in with the loan, so if you move or refinance the loan or the mortgage is sold to another lender you do not lose your insurance. Many mortgage policies written when the loan is closed are only accidental death policies. They do not provide full protection if a death occurs due to natural causes.
Get your insurance premiums back
One of the most valuable features to consider is the Return of Premium Rider. For an additional cost, this assures that the premiums you paid will be returned to you if you outlive the term period. Some companies return all the premium, some return a percentage of the premium. The later is usually less expensive. With this provision you will not feel like you have wasted money on something you didn’t use.
The conversion option
These policies automatically include a conversion option which allows you to convert your term coverage to permanent insurance which can accumulate cash values during the initial term plan or at the end of it. You can convert all you death benefit or a part of it.
Give us a call and let up work up a plan for your mortgage.