Finding a New Affordable Mortgage Protection Insurance

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Can I get a new policy every few years?

Finding a New Affordable Mortgage Protection Insurance

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.

   

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