What is Mortgage Protection?
Mortgage insurance is similar to traditional life insurance, but includes many living benefits as well.
These benefits include options, such as, Return-of-Premium, Child Riders, Disability Option, Critical Illness, Waiver-of-Premium, and Accelerated Death Benefits.
What is Return-of-Premium?
Wouldn't it be nice, if your car insurance company returned all your premiums to you if you never used the coverage? Well, that is exactly the way this popular new life insurance feature works. The insurance company invests a portion of your premiums while you participate in the plan. If you need the coverage during your 15, 20 or 30-year term, then your family would be protected, but if you don't, all premiums would be returned to you at the end of the term you selected. And if in the meantime, you borrow against your plan, don't worry -- the insurance company will simply deduct whatever you borrowed from the premiums they collected, and that adjusted amount will be returned to you.
How does the Critical Illness Option work?
Critical illness either pays out a lump sum or provides an income if you are diagnosed as having one of a number of illnesses, including cancer, strokes or heart disease -- even if you make a full recovery.
What is Waiver-of-Premium?
These policies also include many free options such as Unemployment Waiver-of-Premium, where if you become unemployed the plan waives its premium for a specific period of time and essentially pays for itself, so that you are not at risk of losing your life insurance.
What is an Accelerated Death Benefit?
Accelerated Death Benefit allows you to cash out up to 75% of your policy's face amount should you become terminally ill.
How does the Disability Option work?
Available as a stand-alone option, or as a rider to your mortgage protection plan. If you become injured, on the job or off the job, due to sickness or injury, this plan would make your monthly mortgage payments until you can go back to work. The consumer would define the elimination and benefit period of the plan, to help determine the ultimate cost.