Life insurance is a complex industry with many options. It can be hard to determine the right choice for you and your family. 20/20 Mortgage Life Insurance will explain the difference between a few types and who they’re suited for.
What Is Term Life Insurance?
Similarly to mortgage life insurance, term life insurance is coverage for a set amount of time, say ten years. The premium remains the same, and depending on the insurance agency and the policy, can be renewed for additional terms, although the premiums could go up every time.
Facets of Term Life Insurance:
- Guaranteed level and affordable premiums for the term selected.
- Possibility of extending the term between the policy's 2nd and 5th anniversary.
- Available with smoker and non-smoker rates.
- Available as an individual or joint first-to-die policy or as a rider.
- The rider is only available on an individual policy.
As you can see, there is no one right answer to the question or whether mortgage life insurance or term life insurance is right for you. You need to consider how much coverage you’ll need and whether or not you’ll be able to qualify for it. It’s best to speak to a professional to determine these factors.
What Is Mortgage Life Insurance?
Mortgage Life Insurance is insurance designed specifically to pay out enough money to cover the remaining balance on your family’s mortgage in the event of premature death of the policyholder. Most banks offer this service when you are applying for a mortgage, but you are not required to sign up for it. 20/20 Mortgage Life Insurance is an independent insurance provider that does not tie you to a bank and mitigates some of the issues generally associated with mortgage life insurance.
Facets of 20/20 Mortgage Life Insurance:
- Covers your largest financial obligation, your home. This prevents the bank from making a claim to foreclose on your home; you won’t need to default in an emergency.
- Easy to purchase. 20/20 does not require an extensive questionnaire or medical exam and the policy is underwritten at the time of application so you won’t need to worry if the money will be there when you need it.
- Helpful for people who struggle to qualify for regular life insurance. Pre-existing conditions do not disqualify you for 20/20, and as noted, no medical exam is required.
- Low premiums. While we don’t distinguish between non-smokers and smokers, for instance, because we are not part of a bank with significant overhead, your premium remains steady and lower than our competitors’.
- Supplemental. We offer supplemental coverage for critical illness or disability, making it easy to add coverage than a traditional policy.
- Portable. Your policy is tied to the amount left on your mortgage, but it's not tied to the bank or mortgage lender. If you change mortgage lenders or refinance, you don't need to requalify for your policy the way you would with a bank. We offer options for people with mortgages over $600,000.
Talk To An Advisor Today
If you’ve considered life insurance in the past or are at a turning point in your life, it’s time to make a decision. Applying now could save you higher premiums later. 20/20 Flex offers an easy online quote calculator, and we’re happy to answer any questions you may have through our online contact form. We hope to hear from you.
