In addition to making you aware of your need for life insurance, Mortgage Life policies can be a GOOD deal for some people. Please, read on to find out if you are one of those people for whom this product makes sense.
If you recently refinanced or bought your first home, you can expect to receive multiple offers from companies that sell mortgage protection insurance. Some of these offers may be frauds.
It could be surprising; however, knowing who has recently purchased a house can be a public record. The information on who bought or refinanced mortgages for homes and the lender, the loan amount, and the address to which the loan is tied can be found in the local courthouse. The companies will offer life insurance and mortgage protection to prospective homeowners.
Be wary of offers asking for personal information such as Social Security, bank account, or credit card numbers. Most trustworthy companies will not solicit these details when first contacting them to find out if they would like to purchase mortgage insurance to protect you from the mortgage.
Mortgage life insurance costs more than guaranteed level term insurance. It's typically sold as a "Non-Medical" product. Non-medical means you are not required to have a physical exam (including blood and urine samples) to qualify for coverage. The application process is simplified. It is quick and easy, asking a limited number of health questions. Mortgage Life Insurance is generally sold with only two classifications: Standard Tobacco and Non-tobacco.
The good news is that the annoying mailers you receive are also accurate about the cost. It's generally quite affordable to buy $250k in Life insurance for a term (assuming you're in good health).
It may be surprising to find out who's recently bought a home that will be public. Information about who purchased or refinanced an existing home loan and the lender, the loan amount, and the address to which the loan is tied is available from the local courthouse. Businesses will contact new homeowners in the coming months with special offers such as life insurance and mortgage protection.
Most mortgage life insurance policies offer riders that include disability insurance and Return of Premium. The disability insurance rider is designed to pay the mortgage payment if you become disabled due to injury or illness. The disability riders on these plans are usually not very strong. In other words, the definition of disability is that you must be catastrophically disabled to qualify for benefits.
If you purchase a home (or refinance), you receive lots of unwanted mail.
Alongside making you aware of the need for life insurance, Mortgage Policies on life can also be an excellent deal for specific individuals. Check out the following article to determine whether you're among those who think this product is suitable.
A "Return of Premium" (ROP) rider refunds the premiums you pay (excluding any claims) at the end of the term (usually 20 or 30 years). Reading the fine print on the ROP rider is important because details can vary widely.
Everyone hates being bombarded with offers on the same product, mainly when the suggestions are somewhat confusing. But, most people aren't insured in the area of life insurance. The mailer recommendations could serve as reminders, informing you of the requirement for coverage. The prospect of taking on a significant debt should prompt you to reconsider how much life insurance is.
The horrible company that sends deceptive marketing letters to those with new mortgages, offering mortgage protection life insurance. They make the letter appear very official, making it even harder for consumers to understand this is deceptive spam. Avoid this company.
A mortgage protection life insurance policy is a term life policy explicitly designed to repay mortgage debts and associated costs in the event of the borrower's death. These policies differ from traditional life insurance policies. With a conventional policy, the death benefit is paid out when the borrower dies.
Is mortgage protection insurance tax deductible?
No. Typically, mortgage protection life insurance premiums are not tax deductible.