Finalizing Your Policy

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When is my mortgage protection in effect?

Finalizing Your Policy

When you fill out an application for Mortgage Protection insurance and receive a quote, don't think that everything is said and done yet. Filling out the Mortgage Protection application and agreeing to the quoted amount does not mean that you're covered. Even if you submitted your first premium with the application, it doesn't mean that the insurance company has accepted you yet.

Before you're officially covered, the underwriters must review your Mortgage Protection insurance application as well as your medical records, Medical Information Bureau report, Motor Vehicle Report, and any other underwriting information. It's not until all these items have been reviewed, your premium has been paid, and your policy has been delivered that you're actually covered.

If you should pass away before your policy is issued, the insurance company can return your premium and application to your estate without being obligated to pay any death benefit. If your policy was issued but you did not receive it before your death, then the insurance company is obligated to pay the death benefit.



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