Really we have 2 questions:
1) What is mortgage protection?
2) How many beneficiaries can you have?
Mortgage Protection is term structured life insurance built around your mortgage so that upon death or upon triggered living benefits, that mortgage gets paid off so that either for you or and or for your loved ones that it’s own free and clear debt-free. Now, how many beneficiaries can you have on your mortgage protection policy? It depends on the company in the program. Most companies don’t have a limit on the number of beneficiaries. Now, of course, most of you know, but some of you don’t know the beneficiary is going to be who receives the benefits of the mortgage protection policy upon your death.
If it’s a living benefit that is triggered, your beneficiaries don’t receive the benefit you do because you’re still alive. So most companies by default, have you pick two, three, four beneficiaries at most, but I’ll tell you, your agent can put in a whole list on a separate set, the seven that I have to stress again on a separate sheet of paper that can be attached to your application and you can have an unlimited number of beneficiaries, anything within reason.
So in most cases, one or two or three or four beneficiaries are more than sufficient. But sometimes with larger families, the insured wants to have the whole extended family written in there. And you can certainly do that. Another option, which is a bit of a cleaner option for mortgage protection beneficiaries, is just to name either an estate or name the trust and put everyone within that. And that is an excellent way to handle it as well. But if you don’t have a will drawn up and you don’t have a trust drawn up, you can certainly name everyone.
And that’s OK, too. And your agent should be more than willing to do that. It’s not difficult and it doesn’t cost anything to add additional beneficiaries. So I hope this has been helpful. This is Chad signing out; stay safe out there.