If you recently bought a home and took out a mortgage, you might be thinking about getting a life insurance policy. There are several options to get protection for your family including options that do not require a medical exam, and I’ll go through them in this blog post.
Mortgage Protection Life Insurance
Some mortgage lenders offer mortgage protection life insurance. For example, Dollar Bank offers insurance that will reduce or pay off your mortgage in the event of your death. Typically the lender is the beneficiary on this type of policy, which is often decreasing term life insurance. In decreasing term life insurance, as your mortgage balance decreases, your amount of coverage decreases as well. Typically these type of policies don’t require a medical exam and you can typically pay the premium along with your mortgage payment.
Term Life for Mortgage Protection
If you don’t want your lender to be the named beneficiary on your policy, you can choose to shop for a term insurance policy. With a term policy, you can choose the amount of coverage you want, and match it up with the length of your mortgage. For example if you have a $250,000 30 year mortgage, you can buy a $250,000 30 year term policy. Because you own the policy, you can name whoever you want as the beneficiary. Unlike decreasing term life insurance, term policies are usually level term, which means the life insurance coverage stays the same throughout the period of time you have the policy. At ChooseTerm we specialize in helping you shop for the best rates on term life insurance, and you can fill out our quote request form on our home page.
Non Medical Mortgage Term Life
If you choose to get a Term Life policy, there are options for policies that don’t require a medical exam. If you have gotten a mortgage within a year, you can get up to $500,000 in a term mortgage life insurance policy without a medical exam. If you obtained your mortgage over a year ago, or don’t have a mortgage currently, you can still get a non-medical term life policy, typically up to $350,000 in coverage. At ChooseTerm, we work with several carriers that offer a no medical life insurance policy, and we can help you obtain a policy at the best possible price.
If taking a medical is not a big issue for you, and you are generally healthy, you can get a better rate on a policy by buying a term life policy that does require a medical. With ChooseTerm you can shop for over 30 life insurance companies and we can help you find the best rate for this type of policy. Contact us today for a quote.
If you have recently gotten a mortgage, the important thing to remember is that getting some kind of protection for your family is very important. The last thing you want your family to worry about is how to deal with the monthly mortgage payment while they are greiving. Look into your options, but don’t procrastinate, protect your family today.
Author: Liran Hirschkorn