Mortgage Life Insurance - Rip-off Or Real Value?
- Date: 2007-04-26 - Word Count: 338
Share This!
Mortgage life insurance policies have been around for many years now. These no medical exams life insurance policies will pay off the mortgage balance on your home in the event of your death.
The rates on these life policies go down each year as your mortgage is also reduced. A mortgage life insurance policy allows you to know that your family will have a fully paid home in case something did happen to you.
With this said however, the question is, are these life policies worth having?
As with credit life insurance on your credit cards, mortgage life may not be a great value. In fact, many consumer advocate groups as well as some federal insurance regulators are all saying the exact same things.
The biggest beef that all of these groups and people have is that once your mortgage is paid for; you have nothing to show for all the premiums paid in. So, unless you die, or become terminally ill, you've spent all this money and have no life insurance.
How often do life insurance companies actually pay out the policy proceeds?
The NAIC says that mortgage life insurance lenders pay 40 cents for every dollar they collect in premiums. 40 cents is all. Compare that to the 90 cents that regular life insurance policies pay out. Needless to say, there is big money in the mortgage life insurance arena.
One positive note that I've found is that these are no medical exams life insurance policies. You'll never have to qualify medically. That's a real plus for those who could never get life insurance any other way.
So, is it for you? Well, if you have a current life policy that would cover your mortgage and provide additional money to your family, then most likely not. But for those who have no insurance, or can't qualify medically, then mortgage life insurance may be worth having.
All Rights Reserved Worldwide. Reprint Rights: You may reprint this article as long as you leave all of the links active and do not edit the article in any way.
The rates on these life policies go down each year as your mortgage is also reduced. A mortgage life insurance policy allows you to know that your family will have a fully paid home in case something did happen to you.
With this said however, the question is, are these life policies worth having?
As with credit life insurance on your credit cards, mortgage life may not be a great value. In fact, many consumer advocate groups as well as some federal insurance regulators are all saying the exact same things.
The biggest beef that all of these groups and people have is that once your mortgage is paid for; you have nothing to show for all the premiums paid in. So, unless you die, or become terminally ill, you've spent all this money and have no life insurance.
How often do life insurance companies actually pay out the policy proceeds?
The NAIC says that mortgage life insurance lenders pay 40 cents for every dollar they collect in premiums. 40 cents is all. Compare that to the 90 cents that regular life insurance policies pay out. Needless to say, there is big money in the mortgage life insurance arena.
One positive note that I've found is that these are no medical exams life insurance policies. You'll never have to qualify medically. That's a real plus for those who could never get life insurance any other way.
So, is it for you? Well, if you have a current life policy that would cover your mortgage and provide additional money to your family, then most likely not. But for those who have no insurance, or can't qualify medically, then mortgage life insurance may be worth having.
All Rights Reserved Worldwide. Reprint Rights: You may reprint this article as long as you leave all of the links active and do not edit the article in any way.
Related Tags: life insurance, life insurance policy, mortgage life insurance
By the way, you can find out more about Mortgage Life Insurance as well as information on all types of life insurance at www.Life-Insurance.InfoFromA-z.com Your Article Search Directory : Find in Articles
Recent articles in this category:
- Motor Trade Rundown
It is not just cars that must be insured on British roads, every type of motor vehicle is required b - Claiming Compensation For Defective Products
Compensation claims for injury and damage caused by faulty, defective products normally target eithe - Ideas To Uncover Affordable Rate Auto Coverage
These days, everyone is looking for ways to lower expenses. Certain costs like home and car insuranc - Should It Be Illegal For People To Drive Without Vehicle Insurance?
There are many drivers on the road who drive un-roadworthy vehicles. The worst part is not that they - Do You Need Static Caravan Insurance?
Static caravan insurance is an automobile insurance that deals with vehicles that are used while on - Insurance - Tool For Personal Finance Planning
Financial planning is must for every individual. When we start saving money for our goals, there is - Family Life Insurance Policy For The Families Staying In Dubai
The main motive of insurance policy is to give financial security to the person's family especially - Buying Temporary Health Insurance In Florida
You are the resident of Florida? You are between jobs and therefore are not looking for a long term - Car Insurance Is Of The Utmost Importance In Today's Lifestyle
In today's hectic lifestyle we are always rushing to get from one place to another, whether it be ru - Health Insurance Companies Are Using New Laws As An Excuse To Raise Their Rates
Government officials are cautioning insurance companies to stop utilizing scare tactics to steam up
Most viewed articles in this category:
- International Health Insurance: Insure Yourself While in Go
We all will agree that whether we are living in our home country or abroad, our health needs constan - It's Never Too Early to Buy a Long Term Care Health Insurance!
Most people delay buying a long term care health insurance because they think that it is too early t - Home Owner Insurance Quote: Stay Safe!
Your house will not be fully secured until and unless you have a home owner insurance policy. A home - The Benefits of Health Insurance Are Immense!
Almost everyone in this world has fallen ill sometime or the other. Apart from illness, many people - What Happens When You Make An Insurance Claim?
If you've never filed a loss claim before, you might feel nervous and confused about the whole proce - Pet Health Care Insurance: Show your Pets That you Care!
Having a pet in one's household is a joyful experience. It can provide you with entertainment, compa - Three Ways to Buy Long Term Care Without Paying Premiums Out of your Pocket
Stop 100 people over 65 on the street and ask them if they will ever need to go to a nursing home an - Protect That Bauble: Engagement Ring Insurance
Engagement ring insurance can protect your bauble in case a worst case scenario happens...So you've - Do I Need Diamond Ring Insurance
If you have to ask whether or not you need diamond ring insurance you probably do. There's somethin - Choosing a Benefits TPA
The use of third-party administrators (TPAs) is one of the hottest trends in insurance today. Accor