Mortgage Protection Insurance Terminology

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How can I understand all the jargon insurance companies use?

Mortgage Protection Insurance Terminology

Mortgage Protection Insurance policies seem to have their own language. When you're applying for Mortgage Protection Insurance, it's helpful to have a good understanding of the terminology so that you're not at a disadvantage. Here is a brief overview of some of the most frequently used Mortgage Protection Insurance terms.

  • Face value: The face value (also called death benefit) is the amount of money that will go to your beneficiaries should you die.
  • Primary beneficiary: The primary beneficiary is the person (or persons) who will receive your death benefit if you die.
  • Contingent beneficiary: The contingent beneficiary is the person (or persons) who will receive the death benefit if your primary beneficiary is deceased at the time of your death.
  • PHI: A PHI is a personal history interview. These are telephone interviews conducted with insurance company representatives to help get answers about your medical history.
  • MIB: MIB is the Medical Information Bureau. They furnish insurance companies with a report of all the health findings other insurers have made about you.
  • Lapse: A lapse is the cessation of your policy due to nonpayment of premium.

   

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