Naming the Owner of Your Mortgage Life Insurance Plan

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Does the insured individual have to own the mortgage life insurance plan?

Naming the Owner of Your Mortgage Life Insurance Plan

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.

  • The owner rules: The owner of a Mortgage Life Insurance Plan is the only one who can make changes to the beneficiaries of the Mortgage Life Insurance Plan. If you decide to have your spouse own the Mortgage Life Insurance Plan that you're insured under, you will have no say in the naming of the beneficiaries and no ability to change them.
  • You can't take them off: You cannot remove the owner of your policy. If your spouse owns your policy and you get divorced, then he or she will still have the ultimate say in your beneficiaries. You can submit a policy assignment form to remove an owner from your policy, but they must agree and sign off on the form.

   

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