Methods of Payment & Payment Schedules
Read this tip to make your life smarter, better, faster and wiser. LifeTips is the place to go when you need to know about The Basics of Mortgage Life Insurance and other Mortgage Protection Insurance topics.
How can I pay my mortgage life insurance premium?
Your Mortgage Life Insurance policy isn't free, and this means you'll have to make premium payments according to the schedule you agree on with your Mortgage Life Insurance company. Luckily, there are several different ways you can pay your Mortgage Life Insurance premiums.
- Methods of Payment: Mortgage Life Insurance premiums can be paid via check or money order sent by mail. In addition, all Mortgage Life Insurance companies will require you to set-up an EFT (Electronic Funds Transfer) if you pay monthly, which is simply an automatic bank draft from your checking or savings account.
- Payment Schedules: Most Mortgage Life Insurance premiums can be paid either monthly, quarterly, semi-annually, or annually. You may have certain surcharges applied to your premiums if you decide to pay quartly or semi-annually.
No matter which payment schedule or method of payment you choose, be sure to stick to the schedule. Just one late payment can result in the lapse and termination of your Mortgage Life Insurance policy and can put you and your family's financial future at risk.