Mortgage Protection Insurance Terminology
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How can I understand all the jargon insurance companies use?
Mortgage Protection Insurance policies seem to have their own language. When you're applying for Mortgage Protection Insurance, it's helpful to have a good understanding of the terminology so that you're not at a disadvantage. Here is a brief overview of some of the most frequently used Mortgage Protection Insurance terms.
- Face value: The face value (also called death benefit) is the amount of money that will go to your beneficiaries should you die.
- Primary beneficiary: The primary beneficiary is the person (or persons) who will receive your death benefit if you die.
- Contingent beneficiary: The contingent beneficiary is the person (or persons) who will receive the death benefit if your primary beneficiary is deceased at the time of your death.
- PHI: A PHI is a personal history interview. These are telephone interviews conducted with insurance company representatives to help get answers about your medical history.
- MIB: MIB is the Medical Information Bureau. They furnish insurance companies with a report of all the health findings other insurers have made about you.
- Lapse: A lapse is the cessation of your policy due to nonpayment of premium.
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