Mortgage life insurance is taken out on the life of the debtor on a mortgage with the purpose of paying off the mortgage loan should the borrower die.
There are several methods used to calculate the amount that the mortgage life insurance will pay.
If you graph the balance of a mortgage that is left to pay on a year by year basis, you will find that there is a curve that stays very high in regards to what is left to pay in the early years.
If you run a typical mortgage amortization schedule, you find that in the early years, there is still lots of principal that remains to be paid. It doesn’t begin to drop much at all during the first 12 to 15 years.
If you had a mortgage insurance policy that had an even decrease in death benefit each year, there would not always be enough death benefit to cover the remaining balance of the mortgage. This type of life insurance coverage is what is known in the life insurance industry as decreasing term life insurance.
Another way to cover a mortgage would be to buy a level term policy. This type of life insurance will provide a level amount of coverage for a period of time.
For example, if you have a 30 year mortgage of $300,000, a person could purchase a level term policy for $300,000 of death benefit.
The amount of the mortgage would always be covered, and if the person were to die some years down the road, then any difference between the mortgage amount and the death benefit could go to the family.
Still another method of covering a mortgage is to purchase a permanent life insurance policy, or one that has a cash value.
In this type of policy, the premiums are more, because the actuarial calculations project the life of the policy to the average life expectancy of an individual. This requires that a reserve be established from within the policy in order to keep the premium level throughout the life of the policy.
Even though the premiums are higher in a permanent policy like this, there will be enough equity that accumulates in the policy to pay off the mortgage in advance, should the mortgagee live, in about the 22nd year.
By paying the mortgage off earlier that its normal 30 year term, a lot of payments and interest can be saved, leaving the home free and clear to the mortgage holder and his family.
The amount that is owed on the mortgage can simply be borrowed from the policy, or the policy can be cashed in, or surrendered and the cash proceeds are then paid to the lender.
Life insurance generally requires that a person be in good health in order to qualify for coverage.
If a person has cancer, heart disease, or a number of other health issues, he or she may not qualify for coverage, or if they do, the cost may be so high that it is prohibitive just for the individual to pay for it.
There are group mortgage policies that banks, lenders, and other types of lenders may have available that will simply pay of the balance of a mortgage, should the borrower die before the entire mortgage is paid off.
These policies are generally designed so that there are no health requirements in order to gain coverage. This method of covering a mortgage would be ideal if a person did have health issues.
There are advantages of purchasing life insurance coverage yourself, if your health is good and you qualify for a good price for a policy. Individual life insurance is based upon a person’s age and state of health. Term life insurance is relatively inexpensive and can easily be purchased from a variety of companies.
If both a husband and wife are working, a term life policy can be taken out on each person for the amount of the mortgage, or for the amount of each person’s portion taken as a percentage of what their incomes contribute to the overall family income.
It is also an advantage to name a spouse as the direct beneficiary of the proceeds of a mortgage life policy, as it allows more flexibility for other family needs in lieu of simply paying the mortgage.
For example the lump sum could be converted to an income stream which may be more beneficial.
What is it? Life insurance is a contract you make with an insurance company to ensure financial protection for your family and / or people who depend on you, in case of your absence. It is a safe which can also benefit you directly, in the case of permanent disability or a serious illness, for example. The contract of this type of insurance must have coverage for the risk of death, which occurred due to natural or accidental cause, or in the case of survival coverage, found in pension plans (compensation paid at once or in the form of income if the insured survives the period stipulated in the policy of life insurance).
The main and mandatory coverage of life insurance (against the risk of death) may have additional guarantees provided for in the insurance people. This is possible because life insurance is part of the personal insurance. This has several different types of coverage for the life insurance : death, disability by accident, permanent functional disability due to illness, permanent disability by disease, severe, daily diseases hospital, daily temporary incapacity, unemployment and loss of income, among others. All these covers can also be combined in such a way that will result in specific products such as travel insurance, lender and educational.
The life insurance over 50 – what you do need to know.
Most insurers is restricted to persons over 65 years of age, and some impose limitation from 60 years to employ, depending on the coverage. On the other hand, on the market there are life insurance targeted to seniors, with acceptance insured under 80 years of age. Only the tip of the pencil means almost prohibitively expensive for those who spent 60 years of age, since from this age group the risk for the insurer is higher (higher probability of occurrence of the event). However, the age limit for recruitment of life insurance has been lower in the past and tends to be higher in the future. Life insurance is definitely worth looking for, especially when we think of people who are more than 50 years of age.
It is very important to compare life insurance quotes online
Before making any decisions you should definitely go online and look for different products since it is easy to compare life insurance quotes online. There are many companies that are able to provide high quality services even when we think about seniors who want life insurance over 50 years of age. It is essential that you have a reliable company do the whole service for you, otherwise you might just be wasting your hard earned money with something that will not be any god for you or even for your family. It is essential to read the conditions and in case you still have doubts or is simply unsure of the decision you will make you should have a lawyer beside you. It is possible to have life insurance over 50 and guarantee the future of your depends as well.
Never mind finding the best life insurance quotes online sometimes just hanging onto the policy you have can be a mission. From trying to track down the missing policy of a deceased relative to making sure that your own family don’t have to do the same, here are some tips.
Use the records that are available.
Unfortunately, there is no national database of policies, although lost life insurance policies are hardly rare. Estimates put the unclaimed national total at about 1 million right now! If the loved one who’s policy you’re searching for passed recently, you can try a basic document check. Look for records of premium payments, or bills or other communications from the insurer. You may also have some luck with their previous employer, benefits administrator or financial planner/accountant- anyone who might know what they did with the policy. Don’t forget to look out for mail regarding the policy, and check all facilities such as safe boxes. Even old tax returns can assist, as they will often times show interest received from or paid to such a policy. Browser history can also indicate, for example, if they’ve been looking to compare life insurance quotes online and who with.
Contact likely companies.
Most people don’t hop too far when choosing policies. If you’re deceased had a number of policies with one company, try asking them for a search for a life policy, If you can provide them with a social security number and other pertinent information, you’re much more likely to track down the policies you need. Remember that, should the deceased be a younger person, most people like to track down the best life insurance quotes online- you may be able to get a sense of who from via email correspondence or browser history.
If the deceased has been passed for a while, however, such tips as looking for evidence of them comparing life insurance online won’t help. However, it’s possible that it will be already handed to the unclaimed property office of the state in which they lived. Missingmoney.com is a good place to start your search. It will also link you to unclaimed property agencies. Do remember that claims that make a hit on this database will need to be proved and substantiated, so make sure you have all paperwork including a death certificate.
Try state help and databases
The best life insurances quotes online aren’t all the net brings us. There’s the MIB database, a membership cooperation that fighter fraud and has tools in place to track policies. It’s only relevant for policies since1996, however, and there is a cost associated with it. Alternatively, try enlisting the help of state insurance departments- some have locator services.
Whatever road you take to track the missing policy, take heed of the lesson to be learnt- your loved ones don’t need this additional burden. Don’t just use the net to compare life insurance quotes online, let some of the great database and organisational tools out there keep you from losing your own policy.
You had cancer and now you are a cancer survivor. Now you are thinking about getting life insurance and are wondering if it will be possible to get life insurance with your cancer history. Here is all you need to know about getting life insurance if you are a cancer survivor.
The changes of getting life insurance with a history of cancer
It is not impossible to get life insurance if you had cancer. Maybe a few years back, it would be really hard to get life insurance if you had cancer, but life has changed. There are so many success stories about cancer and cancer treatments, that having cancer doesn’t mean a death sentence. There are companies out there that are trust worthy and that have approved cancer survivors for getting life insurance. It will be a bit harder to get Life insurance if you are a cancer survivor, but not impossible.
Life insurance depends on type of cancer
Getting life insurance when you are a cancer survivor depends also on the type of cancer you had. There are some cancer’s that falls under a higher risk than others. With some cancers you will pay a normal premium, but with other types of cancer you will pay a very high premium. It all depends on what type of cancer you had and how long you are in remission.
What you need to know before getting life insurance
Before you can get quotes for life insurance if you are a cancer survivor, there are a few things that you must know, to improve your changes to be approved for life insurance if you had cancer:
Don’t lie about health
Don’t ever lie about your health if you want to apply for life insurance.Even if you did had cancer. By telling the truth, you have a better change in getting approved for life insurance. If you are lying, they will find out the truth and they will know that you are untrustworthy and they will not approve any life insurance for you.
Try applying for the life insurance with medical exam
You may think that there’s no way og getting life insurance with a medical exam if you had cancer, but it is not true. By going for a medical exam, you can proof that your cancer is in remission and that you are healthy and living a healthy life style. You will not just get life insurance, but you have a good change of getting a lower premium.
Keep all your medical records on hand.
If you had cancer, it is a good idea to have your medical files, which are up to date, ready if you are applying for life insurance. Send it in with your application. This can also be proof that you are cancer free now, and healthy. This will also show the company that you are honest.
If you are a cancer survivor you don’t have to go through life thinking that you won’t be able to help your family financial when you passed away. There are options and it doesn’t mean that if you had cancer, you can’t get life insurance.
Being diagnose with cancer can be devastating enough, but if you know that you don’t have any life insurance, it can be even tougher. Life is going to get quite tough after the diagnoses with cancer; you don’t want the unnecessary extra stress about finding life insurance that will look after your family when you are gone. If you are starting to think about life insurance, check out these five tips that can make getting life insurance a bit easier.
Get all your medical records up to date
You can be prepared for medical questions if you are diagnose with cancer and applying for life insurance. Don’t let all the questions let you feel stressed and out of control. You can easily answer all the medical questions if you have all your medical records up to date and with you. Then you also have the proof they need, ready. This will make applying for a life insurance a bit easier.
Research more than one life insurance Company
Research more than one life insurance Company. You will have more chances for being approved for life insurance, if you have done your homework about all the companies. By researching more than one life insurance Company you would be able to see which companies are approving cancer patients and which one of these has the better premiums. The more quotes you can ask for, the better choices you will have to choose from.
Consider all the different types of life insurances
Make sure that you know all the different types of life insurances, so that you can consider all the different types of life insurances. With the knowledge of the types of life insurance, you can choose the one life insurance that is the best fit for your and your family’s needs. This will also give you more options to choose from.
Be prepared to pay higher premiums
If you are just diagnosed with cancer, you can know that you are going to pay a very high premium each month. Because you have a life threatening illness, you are under the high risk category and they are paying a much higher premium that the healthy people applying for life insurance. But with the fact that you researched different companies, you will get the best premium possible.
Be patients while waiting for approval
You must be patients if you are applying for life insurance. The proses for approving life insurance for cancer patients can take time. While waiting for approval, focus on your health and in getting better and in beating cancer. If your application isn’t approved, don’t lose hope. There will be other companies that just might approve your life insurance policy. Just keep on trying.
Getting life insurance when you just have been diagnosing with cancer can be a hard proses. The key is in patients and on applying for life insurances until some company is approving your life insurance. And don’t ever lose hope, you will find a life insurance company that will approve your life insurance application.
There are so many different life insurance companies in the market, not all of them are really trustworthy and reliable. Before anyone can start getting quotes for your life insurance, you must know these 7 tips on how to find a good life insurance company.
Research each and every company
You can’t trust just anyone with something as important as your life insurance. Your life insurance must help your family financially if you are gone, and just trusting anyone can be a real bad thing. Research each company, making sure they are legit and that they has a good reputation.
Check the company’s ratings
If the company is truly trustworthy, their ratings will be high with excellent recommendations. If the ratings are beneath average, you must be really careful to get your life insurance with them. Nobody will rate a company bad if they don’t have a reason to feel that about a company.
Is the company large or small?
There is a possibility that a small company will have a higher risk of closing down. A large company has a higher change of success and growing even bigger and will last longer. You don’t know when you will be dying and you want your life insurance company still existing then, to pay your family the money that they need to survive.
Double check for complaints and law suits against the companies
This is really important. Make sure that there are no complaints or any kind of law suit against them. If they do have a complaint or law suit against them, it means that the company is not reliable and can even have more trouble in the next few years.http://www.brokerservicenetwork.com/life-insurance-cancer-survivors-need-know/
Be careful for new companies
A new company is always promising you the moon and the starts, but they don’t have proven themselves yet as true and reliable. Be really careful for new companies and try to stay at the more establish companies with a good reputation. Getting your life insurance with a well-known company is a much safer option.
Don’t fall into any traps
Don’t ever fall into any traps. Always keep this saying in mind: If it sounds too good to be true, it is too good to be true. The world is full of criminals that don’t think twice about taking money from vulnerable people. Even from a sensitive issue as death.
Ask around for advice
Ask around for advice and where your friends and family’s life insurance is. If people don’t talk good about a company, there must be something wrong with that company. If a company have good reviews from your friends and family, you can be assure that you can trust the company for your life insurance.
Getting life insurance is one of the most important things you will do in your life. And you really can’t mess up in choosing your life insurance company. You are going to pay the premium for a very long time, and you want the peace of mind that your family will be taken care off when you die. This is why it is important to take these tips in consideration before asking for quotes for your life insurance.
There are so many different kinds of life insurance policies, that if you are just a normal person with no life insurance background, you don’t understand all the different types of life insurance policies. And how can you choose a life insurance policy that is best for your family if you don’t understand each of them. Here are just a few of the life insurance policies in easy language, so everyone would know what they really mean.
Term life insurance policy
Term life insurance policy is for just a period of time. For example: You get a term life insurance policy for 20 years. You are paying a monthly premium for that period of 20 years. If you die during that 20 years, your family will get the amount of money agreed on in the policy contract. If you don’t die in that period, you will lose your premiums paid and the life insurance is cancelled. Then you must apply for a new life insurance policy. The monthly premiums are usually the lower with the term life insurance than with the other types of life insurance policies. The downside is the fact that you will lose that 20 years of premiums if you don’t die in that 20 years period.
Whole life policy
Whole life policy is the most common policy people have. Whole life policy is a life insurance policy that is covering the policy holder throughout his life. There is no specific period involved. You will pay regular premiums throughout your life until your death. Then after your death, your family will get the amount of money that was agreed on the contract to the beneficiary. The premiums paid with the whole life policy are tax exempt. The downside to this type of policy is the fact that at the end of the day, you might pay more in premiums that that your family would actual getting out. You don’t know when you will die, so you don’t know for how many years you are going to pay for the whole life policy.http://www.brokerservicenetwork.com/critical-illness-insurance-cover/
Endowment life insurance policy
With this type of policy, you can benefit in two different ways: The first is when your family gets an amount when you are dead. The other benefit is if you survive the policy tenure, you will get all your premiums paid back with other investment returns and other benefits. These premiums are also tax exempt. This is the type of life insurance policy that more and more people asking for.
Money back life insurance policy
Many people life this type of Life insurance policy, because it gives you periodic payments during the term of the policy. It means that you are getting a portion of the total amount on regular intervals. And if you survive the full term of the policy, you are getting the balance sum that was agreed on in the policy, back.
Understanding this four types of life insurance policies better, you can make a better decision is which policy is the best for your personal needs and what will benefit your family best when you are not there to support them anymore.
Statistics have shown that around 20% of all men suffer from a critical illness before the average retirement age of 65. It also shows that around 16% of women will suffer a critical illness before the same age. Critical illness is much more common today than in precedent years. Critical illness experts have concluded that the average age for a critical illness claimant is 47.
Many people with good health believe that the reports that are heard about critical illness can never happen to them. While we hope this is true, we must look at the picture realistically.http://www.brokerservicenetwork.com/critical-illness-insurance-cover/
What the Statistics Say:
• Around 1 in 3 men and 1 in 2 women that have contracted cancer will live for at least 5 years after the date of diagnosis.
• Almost 80% of those suffering from a stroke will live for over 1 year after the incident.
• 20% of men and 16% of women will fall critically ill before the age of 65
After carefully reviewing the statistics, we can see that these are very clear risks that most wouldn’t want to ignore.
When critical illnesses hit, medical expenses, transportation to the treatment center, other expenses, as well as burial expenses can amount to a small fortune. One estimated funeral arrangement costs a family nearly £9,000. Of course funeral arrangements can be obtained cheaper, but still the cost can become a burden to families that are scraping just to feed their families. The best solution then is to say that “yes it can happen to me, and I have the coverage I need when the inevitable financial obligations hit my family”. Critical illness coverage can provide your family complete peace of mind when times are hard.
You and your family get a tax-free sum of money in case you are diagnosed with a serious, chronic or terminal illness, which must be contained within the insured items on your policy documents. Also, we can take a look at another example to help you understand and consider critical insurance coverage. Let’s say that you are driving and you know you are a good driver. Do you know what other drivers are capable of? What if you are in an accident and it is not your fault? Do you have coverage? Or, what if you fall victim to a burglary and the burglar hurts you in a way that you are injured permanently? We can look at all these potential risks that we certainly hope never come true, but statistics show that at any given moment an accident/incident can occur.
Critical illness insurance is a form of coverage that pays out a tax-free amount of money to you if you are diagnosed with a serious disease or critical illness. The policy documents will list the disease and illnesses that it will cover. If you suffer injuries from an accident/incident that totally and permanently prevent you from attending work, you will usually be covered under your policy.
NOTE: If you have suffered from previous illnesses and diseases, prior to taking out critical illness insurance, then you may not qualify. We have provided a quote form for you to fill out. Once you have filled out the form, someone will contact you, and help you to search for the very best policy from the very best insurer. We cannot guarantee that your premiums will be lower, but we can find you the most comprehensive coverage that is entirely suitable for your needs whilst maintaining a reasonable monthly premium.
I am married, can I include them on my critical illness insurance policy?
Indeed. Life insurance companies are well aware that people often like to insure more than one individual on their policy. However, single policies are designed to cover only one individual. If you need to file a claim then the revenue goes to you, and it is your decision how you spend it. On the other hand, if you have two people to insure you will need to take out a joint policy. The majority of joint critical illness policies are based upon the illness of the first life assured. This basically means that the insurer will pay out if and when the first life becomes ill. After this point, the second life is NOT insured.http://www.brokerservicenetwork.com/understanding-different-types-life-insurance-policies/
One of the better options to look at if there is a partner arrangement is to take out a single policy for each person. Joint policies might cost less, but in the long-run the benefits may outweigh the initial savings. For example, let’s say that you take out a single policy for you and your partner: one of you falls critically ill and the other has his/her own insurance policy. The result: your partner will not have to worry about getting a new critical illness policy; that could result in much higher premiums later on in life.
On the other hand, if you take out a joint policy (first life), your partner may end up with either no cover, or cover that is unaffordable. And finally, let’s take a look at the worst case scenario. What if your partner cannot find an insurance company that will insure them? Note: Life Insurance combined with critical illness insurance may just offer you cheaper rates, and additional coverage! This is something worth discussing with the broker we refer you to.
There are so many different kinds of life insurance policies, that if you are just a normal person with no life insurance background, you don’t understand all the different types of life insurance policies.