Mortgage Insurance is not what you think

The majority of the families I meet with think they have their biggest liability (their home) covered with Mortgage insurance. The problem I find is that typically the person selling the mortgage never took the necessary education, training and licensing to sell life insurance and are not qualified to explain a complicated and important product to people that depend on Mortgage life and disability insurance

Devil is in the Details

Often the lack of disclosure on how Mortgage life and disability insurance really works that leave the client believing that if they accept the insurance and pay the premiums the policy is guaranteed to payout if they suffer a critical illness, disability or if they die. This is not true, just because you make your payments and you checked a couple of boxes on the form, does not approve you for coverage. When your family needs to make a claim the bank’s insurance company will begin the underwriting process. This means that they will now look at your medical history and then decide if you should be covered. So imagine if you passed away, or get diagnosed with cancer, your family is grieving and now they have to wait for the decision of whether or not the policy will payout. There are plenty of horror stories of claims being denied or families having a difficult time collecting.

Is there a better option?

If you meet with an insurance agent, they will be able to asses your insurance needs, explain all your insurance options, answer any questions and save you money. With actual life insurance you have lots of options that typically cost less than the Mortgage Insurance you get from a bank or lender and is Guaranteed to payout because you go through the approval process upfront. If you die, your family gets the tax-free money and choose what to use it for.

You can visit this link to get a free insurance quote and then compare it to what your paying with your mortgage.

The bottom line is you could be paying less and have a guaranteed tax-free benefit for your family when they need it the most.

Mortgage life and disability insurance

Do you have a plan? What is your plan? Life insurance - Because you care.

Wednesday, October 3, 2012

What is the difference between term and whole life insurance

Term vs. Permanent

This is on the differences between term and permanent life insurance.

Term Life Insurance

Let’s define term life insurance. Term life Insurance covers the policy holder for a specific period of time. This period of time is what is referred to as the term. The policy holder’s beneficiary only receives a death benefit if the policy holder dies within the term.

Term life insurance is popular because it offers lower premiums. It is temporary, but it is often purchased by people who only need coverage for a specified time. For instance, it is often bought to cover the time until children reach adulthood, or the time it takes to pay off a mortgage.

What is the difference between term and whole life insurance

Permanent Life Insurance

Let’s define permanent life insurance. Permanent life insurance, for example whole life, offers lifelong protection. As long as the premiums are paid, the policy holder will not lose coverage. Permanent life insurance usually has higher premiums compared to term life insurance.

Permanent life insurance policies are also designed to accumulate a guaranteed cash value over time and often include investment options depending on the type of policy selected.

What is the difference between term and whole life insurance Which Type of Life Insurance Is Better?

Actually, one type of life insurance is not considered “better” than another. Both permanent and term insurances have benefits and drawbacks. Which life insurance you choose, depends on your particular circumstances. When you buy life insurance, talk to an expert to help make your decision easier.

To get a Term Life Insurance Quote

What is the difference between term and whole life insurance