Mortgage protection is a term structured life insurance policy that pays off your mortgage.
A lot of people already term policies, and keep their term, and get another mortgage protection policy. This way, they know that the mortgage is covered. Anything happens and the mortgage gets paid off and they still have all of their term policy to cover other financial needs. If you don’t already have a term. Absolutely. Look into this. Ask us about term life + Mortgage Protection to protect your family.
And you can always build out and add to your portfolio over time. Now, fully underwritten mortgage protection. What is that? Fully underwritten means that when you apply after application, there’s going to be a medical exam.
In most cases, this is true, not always, but in most cases, there’s going to be a medical exam. Sometimes you have to pay for it, sometimes you don’t. But the cost is very low if you do have to pay for it. Twenty-five bucks or something like that. And in a lot of cases, you don’t have to pay for it. The insurance carrier will pay for that. The agent that’s working with you on this is going to make all the arrangements.
So you’ll just be part of the conversation with the application you sign as the agent sends it in, the agent orders your exam, the examiner contacts you to schedule a time when they can come over and they can get a blood draw, they can get a urine sample, height, and weight. And ask you some questions, probably questions your agent has already asked you, but that’s just it’s a requirement. Even though it’s redundant, it’s what has to happen.
Usually, this exam takes about 20 to 30 minutes after the exam.
The examiner is responsible for doing all the hard lifting, all the heavy lifting. So they take everything. They take those samples, everything else. They send it to the lab, send the paperwork to the lab. They do all of that. They make sure that the lab has everything you need. Nothing is missing. Then the lab there. Again, nothing you need to be doing during any of this. The lab assesses everything. They look at the samples.
They send all the results to the insurance carrier.
Meanwhile, your agent is supposed to be watching everything to make sure that the mortgage protection application gets processed correctly and that the insurance carrier receives all of the mortgage protection lab results from your exam. Assuming everything gets where it needs to go and they’ve gotten very good at this kind of thing, so ninety-nine percent of the time it does happen exactly the way it’s supposed to. The insurance carrier, the underwriter for that company, the underwriter are going to review everything.
They have a big job. So they’re going to look at their lab results. They’re going to look at the application. They’re going to look throughout your medical database. And if everything lines up with what was applied for and the health requirements. That program has then they’re going to approve your mortgage protection coverage and these fully underwritten mortgage protection policies, they are they just take longer.
So typically from start to finish, from when you first apply with your agent through that insurance carrier to when you get hopefully approved, typically you’re looking at about anywhere from two weeks to three months if things are slow sometimes when that underwriter is reviewing everything.
They’re also going to require what’s called an ape’s attending physician statement. Nothing you need to do. It’s just something they requested at your clinic and then they have to wait for it. Sometimes clinics won’t release any information or your medical database will be locked down. If you’re a veteran, for example, a lot of times there’s a specialized form that needs to be signed by you before they’ll release it. And this information isn’t known until they’re already through this process by two or three weeks.
So this is why this process can take longer, usually from start to finish. If you schedule a time as quickly as humanly possible to have your exam, usually you’re looking at about three to four weeks for approval with fully underwritten mortgage protection. So I hope this has been helpful. Please reach out to us if you have any other mortgage protection needs or questions, we’re here for you and you stay safe out there.