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.
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.
|Jennifer Mathes, Ph.D.|