Read these 3 Obtaining the Best Mortgage Protection Insurance Tips tips to make your life smarter, better, faster and wiser. Each tip is approved by our Editors and created by expert writers so great we call them Gurus. LifeTips is the place to go when you need to know about Mortgage Protection Insurance tips and hundreds of other topics.
If you're concerned about paying premiums on a product that does not guarantee a return, then the return-of-premium rider might be perfect for you. Many Mortgage Protection Insurance Companies offer this rider, which offers a full return of all premiums paid on your insurance policy if your death does not occur during the term of the policy. When you take advantage of this rider, you pay an extra premium each month, which guarantees that your base premium (as well as the extra paid for the rider) will be returned to you.
In order to exercise the rider offered by certain Mortgage Protection Insurance Companies, you must not allow the policy to lapse at any point. In addition, your death must not occur during the term of the policy because once death benefits are paid, this payment nulls the return of premium rider. Lastly, it's important to remember that there is no interest paid on the premiums that are returned to you.
One of the scariest things facing life insurance death benefit beneficiaries is the possibility that their claim for death benefit proceeds may be denied. During the first two years that a policy is in-force, all death claims are researched. If any information leads the claims department to believe that any information that would have led to a declined policy was omitted from or misrepresented on the insurance application, they can deny the claim. Fortunately, Mortgage Protection Insurance Companies all have something called an incontestability clause built into their policies. The incontestability clause specifies that, after a policy has been in-force for two years, the insurance company cannot contest any claims.
Of course, this does not give license to defraud an insurance company. The incontestability clause is meant to protect those individuals who may have made an unintentional error or omission on their life insurance application. If an insured is found to have purposefully misrepresented his or her health on an application, Mortgage Protection Insurance Companies have the right to cancel coverage and even press charges against the insured.
Mortgage Protection Insurance Rates can be heavily influenced by the information contained in your motor vehicle report (MVR). An MVR is a report issued by your local licensing authority that details all of the accidents and other driving violations listed on your driving record. These violations can indicate to an underwriter how risky your behavior behind the wheel is and can influence the affordability of the Mortgage Protection Insurance Rates you receive.
If you would like to get an idea of what information may be on your MVR before you begin looking for mortgage protection insurance, then you should contact the department of motor vehicles in your state. You can access each of the individual websites for states you may have a driving record in by going to the main site, http://www.dmv.org. You may need to pay a small fee in order to receive your report.
Once you receive your report, if you think that any of the information is incorrect, be sure to contact the Department of Motor Vehicles in your state.
|Jennifer Mathes, Ph.D.|