The Basics of Mortgage Term Insurance Tips

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If I quit smoking after my policy is issued, can I get a new rate?

Mortgage Term Insurance Policy Changes

After you've had your Mortgage Term Insurance policy for a few years, you're bound to have gone through some changes. Luckily, no matter how much worse your health might get, once you're approved—as long as you continuously pay your premium—the policy cannot be taken away from you. But what if your health improves after you've had the policy for a long period of time?

If you change your lifestyle by losing weight, quitting smoking, or lowering your blood pressure for 24 or more months, then you may be able to get a Mortgage Term Insurance premium reduction. Simply supply your Mortgage Term Insurance company with a note from your physician that explains how you've changed your habits and what effect these changes have had on your health. There's no guarantee that the underwriter will agree, but in many cases, they do.

   
What are initial mortgage protection rates based on?

Understanding Mortgage Protection Rates

When you're first quoted Mortgage Protection Rates, you're given rates that are homogenized. That means that you're quoted the same initial rate as every other person who matches your description in a few key areas. The things taken into consideration for homogenized Mortgage Protection Rates include:

  • Height
  • Weight
  • Age
  • Gender
  • Smoking class
You might wonder how the insurance companies come up with rates based on these factors. The insurance companies employ actuaries who look at statistics and determine the likelihood of the death of each person within a certain set of factors. This likelihood determines the Mortgage Protection Rates you will be quoted.

In order to determine your actual rate, your individual health history will be examined and your increased or decreased risk of death based on your individual factors compared to others in your age/height/weight/gender will be considered. The experienced professionals at TermAdvantage help to give you a better idea of your rate, beyond the normal homogenized rate quote.

   
Are there any ways to reduce my mortgage protection premiums?

Long-Term Affordability of Mortgage Protection Premiums

Being able to afford your Mortgage Protection Premiums over the long-term is the key to creating a successful policy. Here are some tips for finding affordable mortgage protection:

  1. Combine policies through riders: You can reduce your overall insurance expenses if you purchase spouse and child riders on your policy, rather than giving everyone in the family their own policy. This will raise your Mortgage Protection Premiums for that policy, but will offer significant discounts over having multiple policies.
  2. Be stringent when choosing a death benefit: It may seem like a good idea to just buy a policy with a large death benefit to give your family plenty of cushion after your death, but if you can't afford the premium, it's a bad idea. Instead, be very choosey about which expenses to cover in the death benefit.
  3. Lose weight: If you're overweight, even dropping as little as 5 pounds could put you in a different price range for Mortgage Protection Premiums.

   
Should a stay-at-home spouse have Mortgage Term Life?

Which Spouse Needs Mortgage Term Life Coverage?

When you're married and purchasing Mortgage Term Life insurance, it's important to remember that the wage-earning spouse is not the only adult in the family who should have Mortgage Term Life coverage. In fact, even though a non-wage earning spouse does not financially contribute toward the payment of the mortgage, he or she does complete other tasks that you may need to outsource if he or she should pass away.

Consider the spouse who stays home and cooks every meal, pays all the bills, and makes sure the house stays clean. If that spouse should pass away, then the surviving spouse either needs to find a way to do each of those duties him or herself, or needs to hire someone to come in every day and complete them. This additional expense can add a financial burden that far surpasses that of a simple mortgage payment.

   
What is the difference between Mortgage Term Insurance and a whole life policy?

The Difference Between Mortgage Term Insurance and Whole Life Insurance

Mortgage Term Insurance is different from a whole life policy in many ways, and it's important to understand their differences before you purchase Mortgage Term Insurance.

Whole life (also called permanent insurance) is a policy that's approved to provide a death benefit payable over your entire life. Because the coverage extends over your entire life, it's more expensive than Mortgage Term Insurance. Whole life also has a cash accumulation feature that requires the payment of additional premiums.

While it might seem nice to have a policy that doesn't expire after 10, 20, or 30 years, you must consider the fact that you're locked into that policy and that death benefit for the rest of your life. Mortgage Term Insurance offers much greater flexibility. With its inexpensive cost of insurance, term periods that are perfect to cover your mortgage debt, and the ability to convert some policies at a later date, Mortgage Term Insurance offers a much more reasonable insurance solution.

   
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