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Unlike a whole life insurance policy, Mortgage Protection Term Insurance does not lock you into a costly policy for the rest of your days. With Mortgage Protection Term Insurance, you can have a policy for as little as five years or as many as 30, depending on your personal needs and situation. You don't need to find the money for your monthly premiums simply so that most of it can go toward expensive policy overhead and cash value accumulation, and if you decide to walk away from the policy before the term is over, you have almost nothing to lose by doing so.
Some Mortgage Protection Term Insurance policies even offer a return of premium rider that will guarantee the return of all the premiums you paid if your death does not occur during the term of the policy. Affordable premiums, flexibility, and personalized policy-design options make Mortgage Protection Term Insurance the right choice for many consumers.
One of the riders sometimes offered as an add-on to Mortgage Protection Term Insurance is a waiver of premium rider. The waiver of premium rider waives your obligation to make a premium payment if you become permanently disabled. If you have this rider, then you can avoid a policy lapse due to nonpayment of premium if the nonpayment is caused by a loss of income brought on by a total disability.
The actual terms of the waiver of premium rider on your Mortgage Protection Term Insurance will vary based on the company that issues your policy, but in general, a qualifying disability will meet the Social Security Administration's definition of a total disability. This means that the insured would be unable to work in any profession at all due to the disability.
Like all riders, the waiver of premium rider comes with an additional charge added to your premium. If you decide to add this rider to your policy, make sure you read the rider description in your policy so that you understand the specific guidelines.
Searching for Online Mortgage Protection Insurance can be extremely overwhelming for the average consumer. You might initially think that it's more convenient than the traditional method of meeting with an agent and having them search for your insurance policy, but in reality, the sheer volume of insurance companies you can search makes Online Mortgage Protection Insurance shopping even more time-consuming than in-person agent meetings are.
When shopping for Online Mortgage Protection Insurance, make sure only to compare A.M. Best-rated companies, look out for consumer reviews, and get in touch with companies' customer service representatives if you have questions.
Once you've found an Affordable Mortgage Protection Insurance policy, it's usually in your best interest to stay insured under that policy until the term ends. The reason for this logic lies in the incontestability clause.
If you purchase one Affordable Mortgage Protection Insurance policy and, two years later, decide to purchase a different one and allow the first one to lapse, then you're going to start your two year contestability period over again. That means the insurance company will be able to deny claims based on accidental misrepresentations in your original application. While claims can always be denied for material (purposeful) misrepresentations and fraud, the insurance company only has two years to deny claims based on simple mistakes that anyone could make.
So before you decide to hop from policy to policy, be sure to take your time and evaluate whether or not it's worth it to put your beneficiaries through that. At the very least, be very careful when filling out the new insurance application.
When you Compare Mortgage Protection Insurance companies, there are many different features for you to consider. Each of these features is important in determining the best company for you:
The Best Mortgage Protection Insurance is the policy that you can afford to keep over the entire term of the policy. It's also the policy that's issued by an insurer rated A or higher by the insurance rating company A.M. Best. Buying the Best Mortgage Protection Insurance isn't just about the affordability of the initial premium, because if you can't afford to keep the policy, then you'll need to get a new one when you're older—this policy will be more expensive. If you buy a policy from a company that is not highly rated by A.M. Best, then the insurance company may not be financially sound, which means they might not be able to pay your death claim when it occurs.
When you add a spouse rider to your Mortgage Protection Term Life policy, you've found a great way to reduce your overall insurance premiums without reducing the amount of insurance protection you have. However, it's important to remember that a spouse rider does not act quite the same way as an individual Mortgage Protection Term Life policy would.
In order for the death benefit on a spouse rider to be paid, the spouse covered on the rider must predecease the spouse covered on the underlying Mortgage Protection Term Life policy. That means that if both spouses are in a car accident and the spouse covered by the rider passes away after the spouse on the underlying policy, only one death benefit will be paid out. Additionally, the rider becomes null and void once the spouse on the main policy dies. So if the spouse on the rider should outlive the spouse covered on the underlying Mortgage Protection Term Life policy, he or she will no longer be covered by any Mortgage Protection Term Life insurance.
In order for your contingent beneficiary or beneficiaries to come into play on your Mortgage Protection Term Life Insurance death benefit, your primary beneficiary or beneficiaries must predecease them and you. As simple as this sounds, many people get confused when a primary beneficiary dies after the insured has died but before a death benefit payment is made.
If your primary beneficiary dies after you die but before the life insurance death benefit is paid out, then the life insurance death benefit will be paid to their heirs, rather than to the contingent beneficiary(ies). That's because the primary beneficiary was alive when the insured passed away, which makes their heirs entitled to your death benefit.
If a primary beneficiary should die before the insured, even just by minutes, then their heirs are no longer entitled to the death benefit and it will instead be sent to the contingent beneficiary or beneficiaries.
|Jennifer Mathes, Ph.D.|