Hello. This is Liran Hirschkorn, from ChooseTerm.com. I want to talk to you
a little bit today about mortgage protection life insurance.
If you have recently gotten a mortgage, you are probably thinking about
life insurance policy. Most people that to get a mortgage, want to be able
to have their spouse or partner be able to stay in the house and not have
to worry about the financial burden of the monthly payments or the mortgage
balance, so they look for life insurance policy. Let us talk a little bit
about what your options are.
One option is a lot of lenders offer a mortgage protection when you get
your mortgage. Typically, these policies are decreasing term policies, so
as your mortgage balance goes down over the years, so does the value of the
policy, the death benefit of the policy. Typically, the beneficiary of
these policies will be your lender. If something were to happen to you, the
death benefit would go to the lender to pay off the remaining mortgage
balance. If you are not looking to have the mortgage lender as your
beneficiary, you might want to look into a term life policy.
For example, if you are getting a 15-year mortgage for $250,000, then you
can get a 15-year term policy for $250,000. You can get a lower dollar
amount if you have some money in the bank, to be able to pay that off. You
can customize the type of policy you want without beholden to the lender,
through mortgage protection-type policy through your lender.
A term life policy would be more flexible, typically more economical, and
your benefit does not reduce over the years. If you think about it, a lot
of people refinance their mortgages over time or they take home equity
loans, your balance may not actually be that much lower 5 or 10 years from
now. If you get the mortgage protection policy, then you will have less
insurance in 5, 10, or 15 years.
If you are looking for a policy, a term policy is very economical. We can
help you find the policy that would be at the best possible price with
highly-rated companies. With this type of policy you can name anybody you
want as the beneficiary; your partner or spouse, or anybody else. You might
want to leave some money to your spouse or partner and some money to
somebody else, kids, etc. You can do that with your own policy.
If you are shopping for your own policy, there are a few different options.
There are policies that do not require medical, and actually, if you have
gotten a mortgage within the last year, there is one company that will
issue you up to $500,000 of insurance for a term policy without a medical
On the other hand, if you are very healthy and in really good shape, you
can probably get a better price by getting a term life policy that does
require a medical. With medical, a nurse will come out to your house, do
blood and urine samples, take your blood pressure, ask you to get on a
scale. Again, if you are fairly health, you can typically get a better rate
than in no-medical policy and have a term policy that you own. You can
choose who the beneficiary is and you are in control.
The important thing to consider and to remember is not to get bogged down
with taking 3 months to figure out, ‘What kind of policy do I want to get;
from my lender, term policy, or no-medical exam policy?’ What you really
want to make sure is that you make a decision to get a policy, because
having a life insurance is only good if you have it when the event occurs.
You can visit our website, ChooseTerm.com. We can help you shop and compare a no-medical policy,
for example, to a medical that does require medical, different dollar
amounts and different terms so we can match you with the right life
insurance company for you.
Also, if you have specific health conditions, then we can help you find a
company that would match closely with maybe the type of condition that you
have so that you can get the best price. Some companies are more favorable
towards specific conditions, that have different underwriting guidelines.
We know those guidelines and we can help you find the right company,
specifically for you.
If you have recently gotten a mortgage, give us a call and we can help you
find a term life policy for you. Thank you.
Author: Liran Hirschkorn