Diverse Mortgage Protection Life
Insurance Choices
Life insurance for mortgage protection is a policy designed to pay off the remaining balance of your mortgage if you die before it’s fully paid off. This type of insurance ensures that your family can keep their home without the financial burden of mortgage payments in your absence. There are a few different types of life insurance commonly used for mortgage protection:
Term Life Insurance
Term life insurance is a popular choice for mortgage protection because it is straightforward and typically more affordable than other types.
You select a term length (e.g., 15, 20, or 30 years) that matches or exceeds your mortgage term. If you die during the term, your beneficiaries receive a death benefit that can be used to pay off the mortgage.
Advantages:
- Lower premiums compared to whole life insurance.
- Flexibility in choosing coverage amounts and terms.
Disadvantages:
- No cash value accumulation.
- Coverage ends when the term expires unless renewed at a higher rate.
Decreasing Term Life Insurance
Decreasing term life insurance is specifically designed for mortgage protection. The death benefit decreases over time, matching the decreasing balance of your mortgage.
Advantages:
- Lower premiums compared to level-term insurance since the benefit decreases over time.
- Tailored specifically to match the mortgage balance.
Disadvantages:
- Limited to the mortgage term, with no residual value.
- May not provide additional financial support beyond the mortgage.
Whole Life Insurance
Whole life insurance provides coverage for your entire life and includes a savings component (cash value) that can grow over time. This can be used for mortgage protection, but it’s more expensive.
Advantages:
- Permanent coverage, no need to renew.
- Cash value accumulation can be borrowed against or withdrawn.
Disadvantages:
- Higher premiums compared to term life insurance
- It can be complex with additional fees and structures.
Mortgage Protection Insurance (MPI)
Mortgage protection insurance is a type of policy specifically marketed for paying off your mortgage if you die. Unlike traditional life insurance, the death benefit goes directly to the mortgage lender.
Advantages:
- Simplified underwriting process; often easier to get approved.
- Directly pays off the mortgage, ensuring the house is secured.
Disadvantages:
- Less flexibility as the payout goes directly to the lender.
- It can be more expensive for the coverage provided compared to term life insurance.
Key Considerations When Choosing a Policy:
- Coverage Amount: Ensure the policy covers your mortgage balance.
- Term Length: Match the term length to the length of your mortgage.
- Premiums: Consider what fits into your budget both now and in the future.
- Flexibility: Decide if you need a policy that offers additional benefits, like a cash value component.
- Ease of Approval: Some policies have more lenient underwriting processes, which might be important based on your health and age.
Steps to Take:
- Evaluate your Mortgage Balance and Term: Understand your outstanding balance and how long it will take to pay off.
- Compare Different Policies: Look at quotes from various insurers for term, decreasing term, whole life, and MPI.
Our Proposal
With a large range of products, riders, and additional benefits, our offerings can be customized to meet the unique needs of any client. Additionally, we pride ourselves on having one of the fastest and most straightforward processes in the industry.
- Our specially designed mortgage products and process offer unique benefits:
- E-application with instant underwriting decisions available in most cases
- Simplified issue products
- No proof of mortgage is required.
- Face amounts ranging from $25,000 to $1,000,000
- Cashback options may be available
- Death benefits are paid in monthly income payments to match your clients' mortgage payments.
- Living Benefit Riders for Critical Illness, Chronic Illness, and Terminal Illness
- Simplified issue policies for those under 70 years of age who would like coverage quickly and easily, with no health exams
- Conversion options for those who would like to switch to permanent coverage later