First of all, what is mortgage protection? It is term structured life insurance built around your mortgage so that if you die or if you have qualifying medical conditions the mortgage gets paid off.
30 years is the longest possible protection, for a ‘fixed’ price. You need to know, though, that with all term structured life insurance, there are programs out there that allow you to extend past the 30 years.
Many programs limit your coverage to 10 or 15 years, if you want until past age 50, to begin your policy. But you CAN extend many of these past the duration of time that your policy is fixed to. It’s going to be the same cost every month, depending upon who sets us up for you. And we have fixed level policies which are pretty much the best thing on the market, best price as best program, or level fixed mortgage protection policies.
And all that means is the coverage does not go down. Coverage does not go up the same coverage, same cost for the whole duration of your mortgage protection policy. And when you get to the month following that last let’s say it’s a 30-year policy, you get into that first month of the year.
Thirty-one. That price will go up at that point, but there are quite a few of these programs out there that will let you continue to a maximum of age. Ninety-five. So if you’re in your 30s and you get a 30-year policy, then around age 60 or in your 60s, whenever that 30 year is up, you can continue for almost basically plus or minus another 30 years. Just know that that cost will be higher.
A lot of people say, well, what’s that higher cost? Typically, it is going to be five to eight times higher than what you were paying before. And that’s just right away. So that’s in the year. Just as an example, you’re thirty-one. Your mortgage protection monthly premium is expected to be about five to eight times or so. Sometimes it can be as much as 10 times higher than what it was before. So it’s significantly higher.
The reason why it jumps up so much is that now they’re basing it off of you’re in your 60s or now you’re in your 70s or now you’re in your 80s. They base it on the age at that time. And that’s what those calculations are based on.
So I hope this has been helpful to you. Please reach out to us with any other mortgage protection questions. We’re here for you and stay safe out there.
What is the cheapest mortgage protection insurance?
I’m Chad McMahan with Protect, with insurance, and I do my best to answer this question for you. So first of all, what is mortgage protection? Insurance, also known as just mortgage protection, is a term structured life insurance built around the mortgage that pays off the mortgage upon your death. Or if you have certain health conditions that you get diagnosed with or certain medical conditions that are sort of developing over time, such as heart attack, stroke, cancer, a lot of things are on the list.
So what is the cheapest? Some companies tend to have the best prices, but not always. It depends upon your situation and depends upon your age. Believe it or not, depends upon gender. Men statistically live five years shorter than women, so typically men pay more for their mortgage protection. So you need to expect that going into it. There are certain companies and certain programs that give better deals for smokers specifically. There are a lot of different companies.
They vary in price greatly when it comes to diabetes, heart issues, and on and on and on. So it depends. There’s not always one company in one program that you want to go with and any competent agent that has access to a lot of these different companies, they’re going to know which ones to price out depending upon your situation. So really, the better answer is how do you partner with an agency or with an agent that’s going to do a great job for you, that’s going to have that information.
You want to go with an agency that’s been around for at least a couple of years. You want to go with an agent that’s been with that agency for or at least they’ve been in the life insurance industry for at least a couple of years, and they’re active and that’s all they do. And you want to make sure that they know their products. So maybe think of a couple of questions. It doesn’t matter what the questions are.
Any good agent that’s genuinely there to help you, they’re going to embrace your questions because it means that you’re interested and it means that you understand more than people that aren’t asking. A lot of people are afraid to ask questions because they feel it’s going to make them look stupid. It does not. If you ask questions, it demonstrates knowledge and confidence, and understanding. So ask a lot of questions. That’s good advice for anything in life.
But when it comes to something that can potentially be complicated, like mortgage protection, it is all the more important that you ask questions. So let me quickly tell you, just a few companies that are known for being very competitive with their pricing for mortgage protection. There’s a company called TransAmerica. Also, American Amicable Mutual of Omaha, are top-rated insurance carriers that have mortgage protection, specific products that are not only excellent because they’re not all the same, they’re not only excellent meaning really good living benefits and very generous death benefits, but also pricing as cheap as possible.
So a really good product and company and as low a price as possible for your mortgage protection. Those companies tend to be good, but there’s always a time and a place for other companies as well. And that’s what we have access to so many of these companies. So if someone tells me they have either perfect health, really poor health somewhere in between, or they have a very specific thing like kidney disease, cirrhosis, or something like that, we’re able to get our clients insured when no one else can.
When they have those health issues and when they have excellent health, we’re able to get them the best price on mortgage protection. And again, that’s just because of good access and excellent training. And I think the number one thing is that our agents genuinely care. They do. So please reach out to us. Let us know what else we can do for you. If you have any other mortgage protection questions, we’re here for you. Stay safe out there.