Frequently Asked Questions
Why do I need mortgage protection?
Insurance purchased for the primary purpose of “mortgage protection”, when set up properly, would provide your beneficiary/beneficiaries with the funds to fully pay off the mortgage. If the mortgage has been paid down, the excess monies would be available for the beneficiary. There are some plans available in the “mortgage protection” market that actually provide benefits for the insured during the insured’s lifetime. These plans can include benefits for Terminal Illness, Chronic Illness, Critical Illness and Unemployment at no extra cost.
I already have P M I insurance, what is the difference?
PMI insurance protects (only) the lender in the event there is a default on the loan. It insures the lender that the full balance would be paid off in the event of the owner’s default.
I currently have a 3 year arm, what happens when I change it?
The insurance is not tied to the loan and does not have to be renewed at that time. If you obtain a new loan for more money, we suggest that you increase your coverage.
What if I move?
This coverage is portable. It is not tied to your property in anyway and goes with you wherever you go.
What if I refinance?
The insurance is not tied to the loan and does not have to be renewed at that time. If you obtain a new loan for more money, we suggest that you increase your coverage.
What if my lender sells my mortgage?
The coverage provides benefits as set forth in the policy, with proceeds payable upon death to the named beneficiary or beneficiaries. It does not matter who the mortgage is with nor does it matter how many times the mortgage transfers or is sold.
What if I don’t die?
Sooner or later everyone will die, but to be specific, we design plans to last either for a time specified time period or even lifetime. We always give the same recommendation - - - whatever you do, make sure it’s affordable.
The mortgage is in my name only, but my spouse helps pay the mortgage. Can I get insurance on my spouse as well?
Insurance can be obtained for “mortgage protection” even though that person’s name may not be on the mortgage. Many times there is a spouse, significant other or family member whose contribution toward the mortgage payment is extremely important as to keeping the roof over everyone’s head.
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