Return of Premium Term Life

Mortgage Life Insurance With Return of Premium

What is Mortgage Life Insurance? Mortgage Insurance or Mortgage Life is simply a term life policy that has been designed for homeowners. It is usually marketed to new homeowners, or those who have refinanced recently. By recently, it usually means within the last year or so, though some of these products can be purchase by those with older mortgages.

It is usually designed to have a term of years that closely matches the length of the mortgage, in increments of 10, 15, 20, or 30 years. The face value of the insurance policy will usually start at the amount of the loan, though most companies will allow a range of face values. For instance, if a spouse has income, a family may not need to the entire amount of the face value to protect itself. On the other hand, if the family has high expenses, they may desire a higher face value than just the amount of the mortgage.

No Medical Exam Life

Mortgage Life is often sold with a promise that the applicant will not need a medical exam. This sounds good, but health questions must still be answered on a detailed life insurance application. So it won't give health insurance to those with serious health conditions. However, for people with minor health issues, it may speed up the underwriting process. In fact, underwriting is often based on credit, and the fact that the applicant has just qualified for a new mortgage, eases that requirement, so some health requirements may be relaxed.

In any case, for busy people, this really speeds up the life insurance application process! It takes time for medical exam information to get returned to a life insurance policy, and for that information to get processed by a life insurance underwriter.

Return Of Premium or ROP

The Return of Premium Feature is called a rider. It will cost more than the base policy, but it provides an attractive benefit! If the insured person survives the policy, they will get the whole value of the premiums paid back. For a policy term that lasts decades, those monthly premiums can really add up! This is a great way to buy insurance, plus get back a nice check just in time for retirement!

Would you like to know how much a policy will cost you?

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Article Source: Insurance Articles


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