Well, it depends upon a few factors, but before I dove in, I want to just break this down into what is quickly, very quickly. What is mortgage protection and what does it mean? What is the best mortgage protection? So mortgage protection is a term structured life insurance policy that’s going to pay off the mortgage upon a whole bunch of different things that could happen. Death is what most people think of, but a lot of these policies go way beyond death.
They go into what are called living benefits. And living benefits are very, very important. They’re more important than death because statistically, most of these policies are going to pay. You pay your spouse, family member, friend, whoever it is they’re going to pay upon certain diagnosed medical conditions that you may or may hopefully you won’t, but that you might get. And we’re in a real health decline in this country. Health is going down.
And well, the life spans for some are increasing. We’re seeing lifespans for others drastically reducing. A lot of this is due to how we eat in this country and also lack of exercise. And that combined with smoking and some other issues, too. We are seeing a lot of issues now for people that eat extremely well. They get some regular, not anything intense, but regular exercise. And they’re not smoking and they’re not putting pollutants into their bodies.
Then we’re seeing them live a long, healthy life for the most part. Of course, there are always exceptions, but so here’s the deal.
So mortgage protection, the best mortgage protection is going to have lots of these living benefits that have high payouts. And you can expect that if certain diagnoses, for example, let’s say you have a heart attack or stroke. No death, no crippling outcome, there’s no permanent damage to your body, there’s no temporary damage to your body, you just have a heart attack or stroke. There are lots of these mortgage protection policies that will actually either partially pay some of them even pay in full, payout one hundred percent of the total policy amount.
Since you’re alive, it goes to you, doesn’t go to your beneficiary and it’s tax-free. So that’s one example of many. Another example would be if you get diagnosed with a chronic condition, a lot of these policies will either pay out again, partial amount like, let’s say, a quarter of it. And some of these will even payout 80, 90, or 100 percent payout.
For chronic diagnoses now, these are fairly common things, these are going to be, if you’re diagnosed chronically ill, that’s up to your doctor if they’re going to diagnose you that way. If you lose at least two activities of daily living ADLs at ADLE is the term as the industry acronym for that activities daily living, are these things that we take for granted every day, getting out of bed, taking prescription medicines, getting dressed, going to the bathroom.
These are all basic things we do every day without help. Now, if you lose at least the ability to do at least two of those things without help, you require help on at least two of those. Then they’ll pay. It triggers the chronic writer and they send you a check. And in a lot of cases, it’s not ending the policy. There still is a lot of money that’s left within the policy and every time it’s a new check, it’s tax-free.
So these living benefits, they are very, very important.
And you want to get a policy mortgage protection policy that pays well and the living benefits are tax-free and are as low cost as possible. There are a lot of policies out there that have no living benefits and they cost more than these AAA-rated insurance carriers that offer living benefits and have the best death benefits that you can find.
So you must call someone up, call an agency, please reach out to us, let them know what your situation is.
They should get busy out shopping for you. We certainly do that for our agents. We will be happy to extend that to you. We can shop for you and pull from all of these AAA-rated insurance carriers that have living benefits built into their policies and get you the best possible option. So I hope this has been helpful. If you have any other mortgage protection questions, please reach out to us. We’re happy to help. Stay safe out there.