Mortgage Life Insurance Company Reserves

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How do insurance companies get the money to pay claims?

Mortgage Life Insurance Company Reserves

Putting the financial future of your beneficiaries into the hands of a Mortgage Life Insurance Company can be a frightening prospect. If you do your homework and work with one of over 2,000 A or better rated Mortgage Life Insurance Companies, you'll have a much easier time sleeping at night. Of course, you may still wonder how exactly the Mortgage Life Insurance Company you have chosen can possibly pay your death benefit when your premium is so small. The answer to that question lies in the term Reserves.

Reserves are pools of money that state insurance regulators require your Mortgage Life Insurance Company to set aside in order to pay the statistically pre-determined number of death claims your Mortgage Life Insurance Company will most likely face. These reserves make it possible for your Mortgage Life Insurance Company to fulfill all of its financial obligations and not leave your beneficiaries out in the cold.

   

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