Read these 6 The Mortgage Life Insurance Application Process 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.
Taking out a Mortgage Life Insurance Plan doesn't have to be a solo affair. In fact, you can have one person own the Mortgage Life Insurance Plan, another person be the insured of the Mortgage Life Insurance Plan, and yet another person paying for the Mortgage Life Insurance Plan. If you decide to have someone else own your Mortgage Life Insurance Plan, there are some important things you should remember.
If your health, hobbies, or behaviors have lead the insurance underwriters to decide that your Mortgage Life Insurance Coverage should be more expensive than the standard rate, then they can add additional premium to your policy in many different ways. Here are a few examples of increased rate structures:
When you're evaluating policies by Mortgage Life Insurance Cost, it's important to consider the overall amount you're spending on insurance policies. When you do, you can decide whether or not there are any insurance policies that can be bundled in order to save you money.
For instance, if you and your spouse are each planning on buying a mortgage life insurance policy, then your overall Mortgage Life Insurance Costs are going to be much higher than they would be if you simply purchased one policy and added a spouse rider to it. In addition, if you were planning to purchase regular insurance policies for each of your children, you should consider bundling up those policies into your own mortgage life insurance policy through child riders. That way, your Mortgage Life Insurance Cost and overall insurance costs will be reduced, which will make you able to pay for this coverage well into the future.
If you don't yet have a life insurance policy and are worried about your potential Mortgage Life Insurance Premium, there are a few things you can do to reduce the premiums you're quoted. These may not be guaranteed ways to reduce your Mortgage Life Insurance Premium quote, but they can help.
There are a lot of different behavioral factors that underwriters need to consider when you apply for a Mortgage Life Insurance Policy. One of these factors is your driving history. Consider how much careless driving, speeding, and driving under the influence can increase your risk of death behind the wheel. That type of driving history can indicate to an insurance company that you might be riskier to cover than your health lets on.
That's why underwriters often pull a motor vehicle report (MVR) on Mortgage Life Insurance Policy applicants. This allows the underwriter some insight into your driving history and determines whether or not your driving behavior makes you riskier to cover with a Mortgage Life Insurance Policy. If it does, it could result in a higher premium or even Mortgage Life Insurance Policy denial.
When you apply for a Mortgage Life Insurance Plan, you'll be asked to name beneficiaries on the policy. There are two types of beneficiaries you can name: Primary beneficiaries and Contingent beneficiaries. Primary beneficiaries are those people whom you really want to receive your death benefit. Contingent beneficiaries are those individuals whom you want to receive the death benefit only if your primary beneficiaries are no longer living.
When naming multiple individuals as primary and contingent beneficiaries, it's important that you specify what percentage of the death benefit each individual is entitled to. If you don't, then the insurance company will assume that you want each to have an equal share.
It's also important that you provide the social security number of each beneficiary. While the Mortgage Life Insurance Plan will not be rejected if it's missing this information, it does make the death benefit payout faster and more efficient.