Mortgage Protection Life Insurance

Cheap mortgage protection coverage quotes for low cost mortgage life insurance is deceiving consumers. No mortgage life insurance company exists. Cheap quotes to cover mortgages with inferior decreasing term hurts consumers, makes fools of life insurance agents, and profits many insurance companies. Here is the truth exposed.

Most life agents are untrained and unqualified; giving rate quotes that inadequately cover a mortgage, or is not protecting a home owners true needs. Ask owners of mortgaged houses 15 years later if they were insured properly. Ask the families of deceased mortgage payers if the coverage was right when their loved one’s life was taken.

“Only seven out of one hundred life insurance agents last an initial survival term of covering consumers for four years. Even fewer properly help homeowners protect mortgaged homes and give quotes of the cheapest term insurance.” Quote by Donald Yerke, who is an Expert Advisor. In fact when asked what mortgage protection life insurance is, the answer is unanimously decreasing term or level term. This is the same answer given by almost all consumers and unfortunately representatives of insurance companies.

Visualize with me this similar situation of consumers not being properly informed of the risks, even though improper coverage can be a lifetime payable risk. The home owners get numerous quotes to protect against dreaded house break-ins. Each sales agent intentionally provides the lowest rate available to that consumer. The owners evaluate by rating the security systems by cheapest total cost with installation.

Next, picture all protected doors, and door wall entries covered by sensitive alarms.  The home owners and family buy this added protection to have a secure feeling of being adequately covered. Of course the selling representative and the alarm company both make a profit off the sale. Well, as you well already know, everything in life does not go as planned.

Now, hear the breaking of the door way glass flying without the sound of any alarm blasting. The professional burglar struts right in without ever touching an alarm activated door. He or she is now an immediate threat to all your belongings, but worse yet is the threat to the security of your family. Had the relatively low cost adding of installing motion sensors been explained, a lifesaver addition could have been easily included.

You might very well remember an old funny shaped board game, called “Life.” Sensibly you and your spouse should be given this reality game by the real estate agent at your house closing. Playing the game quickly demonstrates many of the risky occasions, costs, and unexpected factors that occur despite your desire to determine your own destiny. In fact, you should insist that your agent plays a complete round before providing any mortgage insurance rate costs or advice to you.

Remember that no one has ever won the real game of life.

Same Rates: All insurance companies should charge the same rates for the same coverage. Ask yourself this, “Am I more of a risk to die if I buy insurance with Company X or Company Z”? Each company by insurance laws is required to put the same amount of money in reserves to pay future claims. Now a few things you might consider “unethical” occur behind the scenes to make it look like one company definitely has lower rates than another. After showing you these tricks, you might see why it is unwise to buy mortgage protection with companies quoting the lowest rates.

Too Many Claims: If Company Z suddenly experiences too many death claims, there will not be enough money in reserves to pay out claims, and the company is put into receivership. If you have a claim, your beneficiary may or may not be fully paid. It is very rare for companies to pay all claims, and come back out of receivership. The United States government spent billions with a bailout to AIG Life, which could still go into receivership.

Executive Compensation: Executives, and directors of the insurer will get many years of fat salaries, right up until the time a company needs to be liquidated. There is nothing to stop these executives from starting another term specialty company with high executive salaries and bonuses. Performance of the company to shareholders and payments to consumers that buy protection have no mandated effect on their pay.

Buying Business: It is true that more life insurance will be written by those companies with the cheapest rate quotes. The more money collected, the more executives can pay themselves. For the first five years, the people with mortgaged homes tend to be younger and in good health. For this reason very few claims are paid out. Lots of new policies of people buying lost cost protection flow in. When the claims start catching up to reserves, executives take their money and run.

Overpaying Agents: Compensate an agent 30% higher for writing your term policies, and the agent gets bribed in. Making $30,000 more for selling the same amount of insurance for covering mortgages and other needs is a great deal for the agent. In this case the agent only shows the consumer the policies that pay him or her the highest amount of compensation.

The reality of insufficient reserves and cash assets can occur is suddenly more likely. This puts home owners’ beneficiaries in danger of getting paid. The actual company previously mentioned would be considered by some knowledgeable agents of trying all these tricks.

Now that I unlocked the hidden truth trick vault, I will reveal a couple secrets.

A True Secret: Many companies would like to have my head for telling this. Most salespeople are trained to convince you to buy and have very little knowledge what protects a consumer. It is easier for them to get you suckered in with low price rate quotes, even though the cheapest rates often provide subpar benefits.

Another Secret: Years after buying so called “mortgage protection life insurance”, the consumer meets a professional expert in this protection area and shows them options that should have been presented, but now the low cost rates no longer exist because of health or age.

Should you talk with an agent only about your mortgaged house being paid off when you die? Or should you examine your situation now, when your house is paid off, and when you are retired?

If you have a house with a mortgage there are a dozen questions related to buying mortgage protection coverage you must ask yourself right now.

The Quiz:

1. 20 years from now will you be in the same house, or a home with a higher value and mortgage balance?

2. If you or your spouse should have a heart attack or cancer in the next 15 years, would returning to work to keep making mortgage payments be required?

3. Should after having a major health incident, you decide to purchase more coverage, do you think your rate would be higher? Can any insurance companies deny you coverage?

4. Do you think your chances of having a health problem are higher now or later when you need more protection with a more expensive home and college age kids?

5. Which takes longer in most states, evicting an apartment or home renter or foreclosing on someone unable to make the monthly payments on their home?

6. If a purchase of life insurance was made to cover your mortgage balance, how would it pay the balance if one of you died and you had taken out a second mortgage (due to job loss), or a line of credit for remodeling?

7. If you had purchased a home worth $200,000, mortgaged for 30 years at 6 % how much would you still owe in total payments after 15 years?

8. Did an insurance agent professional ever explain the term deferred annuity to you, where you could pay this same house up to 10 years early and save $150,000 in principal and interest?

9. In case of death, and the home is paid off, would the lack of a paycheck allow for taxes, groceries, clothing, transportation, and entertainment for the remaining family members?

10. How much more interest with guaranteed principal does the mortgage lending company earn compared to your low interest rates at the bank?

11. If you buy decreasing term is it possible for the amount of mortgage protection coverage to decrease faster than the balance on your home?

12. If you are buying level term protection, is it possible that at some point the insurer can refuse to protect you any longer?

13. Why would an agent want to sell you cash value life insurance also called whole life or universal life to keep you protected during the time you are mortgaging the home?

14. Why is it profitable for an insurance company of 10,000 current agents, and in business over 100 years, to hire 3,500 more agents in the next 12 months?

15. For what reasons does a mortgage protection life insurance expert tell you that cheap decreasing term and level term policies based on your current mortgage are a poor decision to buy even with their low cost rate quotes?

Warning: Very few agents of small or large companies understand mortgage protection insurance, and they will not be in the business when you or your spouse die, or health changes occur.

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Mortgage protection life insurance is definitely a wise investment to make to protect your family’s assets when you purchase a home.  It is even more important now than ever, considering the state of the economy.  Mortgage protection life insurance is designed to pay off the entire balance of your mortgage in the event that you die before the mortgage on your home is paid off.

Imagine the peace of mind you would have knowing that paying off the mortgage on your home would not be a burden your family would have to face if something were to happen to you.  It would be a great comfort to your family at a time when they would be dealing with a great loss, and it also makes great financial sense to have a life insurance policy in place so that your family would not be as adversely affected by the sudden loss of your income.

When looking to purchase a mortgage protection life policy, there are some things to take into consideration to make sure you are buying a quality plan and getting good value from your monthly premium payment.  In general, Mortgage protection life policies are term life policies in the amount of the mortgage of the home.  Many policies that are labeled “Mortgage protection life insurance” have certain provisions that may reduce the benefit to what is actually owed on the mortgage, and some are priced higher just because they are packaged as mortgage protection insurance while providing no additional benefit.

That is why it is extremely important to have an experienced and knowledgeable agent that can custom tailor a policy to fit your individual needs.  In addition to the basic term life mortgage protection, a seasoned agent can set down with you to design a package that can also include optional benefits such as disability and other types of additional benefits that would protect you financially in situations besides your death.  An experienced agent would also help you ensure that you are getting the best value for your premium payment each month.

Sign up for the free newsletter to get professional advice from Jeff Futrell, “The Mortgage Protection Doctor” who is the industry leading expert on mortgage protection life insurance.  It is an investment well worth having for your family’s  peace of mind.

What considerations should be taken into account when deciding when to get mortgage protection insurance?  Well, you first have to look at your overall family situation.  How many young children do you have?  How much is your house worth?  And most importantly, how much is currently owed on your home and how would the mortgage be paid in the case of your untimely death?  How would that affect the financial stability of your family?

These are just some of the questions that you need to know the answers to when thinking about getting a mortgage protection insurance policy.  Knowing the answers ahead of time will allow you to make a more informed decision when buying a life policy and will also allow your agent to better tailor a plan specifically for the financial needs of your family.  It will also allow them to design a benefits package that can help you address your financial needs with additional benefits, such as disability and accident coverage.

These benefits can add much value to your policy because they allow for coverage in the event that you are injured or become disabled and ca no longer work.  This would allow you to continue to make mortgage payments when some of your income would be gone.  These plans start immediately to pay the mortgage payments in place of the lost income.  This can stabilize the financial situation for your family and can really make a huge difference for any family who can not make their mortgage payments with only one spouses income or if you are a single parent.

Mortgage protection insurance was designed to help protect a family from being forced to move in case of unfortunate circumstances and should be considered a great idea to any family that is able to afford it. Sign up for the free newsletter to get professional advice from Jeff Futrell, “The Mortgage Protection Doctor” who is the industry leading expert on mortgage protection  insurance.  It is an investment well worth having for your families peace of mind.

Have you just purchased a new home recently?  Chances are that your mailbox is filling up with postcards offering various mortgage life insurance policies to protect your family in the unfortunate event of your untimely death.  Other offers may include offers of mortgage disability insurance that helps you make your mortgage payments in case you become disabled and unable to work.  While it is a good idea to carry a term life insurance policy to cover the payoff amount of your mortgage, not all mortgage life insurance policies are created equal.

Some of these policies only offer a minimal payoff and lose their value to the policy holder by gradually reducing the death benefit to match the amount reqired to pay off the mortgage while costing the same monthly premium.  Other mortgage life policies are really overpriced just because they are packaged as mortgage protection policies.  That is why it is a good idea to have an experienced professional working with you so that you fully understand the policy that you end up purchasing.  This will save your family from some major headaches later on down the road if something happens to you.

So, what can you do to ensure that you get a mortgage life policy that will fully fulfill the finacial needs of your family?  The first thing you need to do is answer several questions for yourself about your financial situation and how your family would need to be provided for in case you were to die before your mortgage was paid off. Knowing the answers to these questions beforehand will really help your agent customize a plan for you to ensure the financial stability of your family.

1.  How much is your hose worth and how much is owed on the mortgage?
2.  How many young children do you have that rely on your financial support?
3.  Could your spouse provide for the family with just their income even if the mortgage was paid off in full?

The reason for the last question is that many policies also offer additional disability benefits that would pay the mortgage payments if you were to become disabled, and these can be a real asset to your family if you became unable to work.  These are just a handful of questions to get you thinking about what the needs of your family truly are and in turn will have you better prepared when talking to your agent.

Mortgage life insurance was designed to help protect your family from being forced to move in case of unfortunate circumstances. Sign up for the free newsletter to get professional advice from Jeff Futrell, “The Mortgage Protection Doctor” who is the industry leading expert on mortgage life insurance.  It is an investment well worth having for your families peace of mind.

If you are like many new homeowners, you may be wondering if you need mortgage protection life.  Well, think about this:  Your home is probably one of the largest investments you will make in your lifetime.  Not only that, your home is much more than a peice of property or investment.  It is the place where your family is protected from the outside world, where your children have a secure place to grow up, a place where your family establishes their roots.  This is the reason why it is essential for you to make sure that your family and your home is protected in case you were to die.

Although the thought of your own death is not a pleasant one, it is reassuring to know that if you were to die, your family would not be facing losing their property and having to move.  That is why it is important that you take the necessary steps to ensure you have a good mortgage protection life policy in place.  Even though your loss would be a hard event for your family, they at least wouldn’t have the added burden of figuring out how to keep living in their home.  That is the main reason to have this type of insurance policy.

When looking at different mortgage protection life policies, it is important that you take into consideration your families finances and what you would want their future to look like if you were no longer there to provide for them.  You can best do this by planning ahead and thinking through what their needs would be without you.  This will also help you when consulting an experienced agent, because you can better explain to them what you want to happen so that they can custom design a plan that is suitable for your family.

When you do decide to consult an agent make sure you find one that is experienced and knowledgeable in mortgage protection life, or even better yet, specializes primarily in that type of policy.  Sign up for the free newsletter to get professional advice from Jeff Futrell, “The Mortgage Protection Doctor” who is the industry leading expert on mortgage protection life.  It is an investment well worth having for your families peace of mind.