FIRST, WHAT MORTGAGE PROTECTION IS NOT

IT IS NOT MIP MORTGAGE INSURANCE

If you pay less than 20% down or have less than 20% equity in the property, the lender will require you to buy mortgage insurance. This kind of mortgage insurance protects the lender in the event you default. It does not protect you at all.

IT IS NOT ACCIDENTAL DEATH COVERAGE

Mortgage companies routinely offer “mortgage insurance” to borrowers for $20 or $30 per month. This is very limited coverage. It pays off only if death occurs by accident. And the term “accident” is sometimes very narrowly defined. The premium stays level, but the payout declines with the declining balance on the mortgage. If you die, all the money goes to the bank, none of it to you. If you refinance the loan or sell the property, you lose your insurance.

OUR MORTGAGE PROTECTION INSURANCE

IT IS TERM INSURANCE

It does not build cash value, and so it can give you the most coverage for the smallest payment.

YOU OWN THE POLICY

If there is a death, you receive the money, not the bank. You can spend all, some, or none of the proceeds paying down the mortgage. You can take the money and leave the house behind if you wish.

DEATH BENEFITS AND PREMIUMS ARE LEVEL

Instead of benefits declining as the mortgage balance drops, the benefits remain level for the full term of the policy. Premiums are level and do not increase as you get older.

YOU NAME THE BENEFICIARY

You can leave the money to whomever you choose.

THE INSURANCE IS PORTABLE

If you refinance the loan or sell the home, you still have the insurance policy. In insurance parlance there is the term "life event." A life event can include a home purchase or refinance, the birth or adoption of a child, a death in the family, or a marriage or a divorce. If you have experienced a life event within the past 18 months, Foresters will presume that you have a reason for buying insurance other than that you are aware you are dying in a short time. Therefore, Foresters will sell insurance to you in many cases without your having a medical examination. I advise my clients always to avoid a medical examination if possible. Any information gathered in a medical examination, including information released from your doctor's file to the insurance company, will remain in the Mortgage Information Bureau, the MIB, for the rest of your life. If you want to find out whether there is something wrong with you, go see your doctor in private; don't rely on an insurance exam. The most common life event is buying or refinancing, which involves a mortgage. Mortgage insurance often contains provisions designed to provide money at critical times in life and thus help you to avoid a mortgage default. Mortgage protection insurance is really insurance that protects you from the mortgage.

MORTGAGE INSURANCE IS OFTEN OBTAINED AFTER BUYING OR REFINANCING A HOME

In insurance parlance there is the term "life event." A life event can include a home purchase or refinance, the birth or adoption of a child, a death in the family, or a marriage or a divorce. If you have experienced a life event within the past 18 months, Foresters will presume that you have a reason for buying insurance other than that you are aware you are dying in a short time. Therefore, Foresters will sell insurance to you in many cases without your having a medical examination. I advise my clients always to avoid a medical examination if possible. Any information gathered in a medical examination, including information released from your doctor's file to the insurance company, will remain in the Mortgage Information Bureau, the MIB, for the rest of your life. If you want to find out whether there is something wrong with you, go see your doctor in private; don't rely on an insurance exam. The most common life event is buying or refinancing, which involves a mortgage. Mortgage insurance often contains provisions designed to provide money at critical times in life and thus help you to avoid a mortgage default. Mortgage protection insurance is really insurance that protects you from the mortgage.

THERE ARE NUMEROUS OTHER BENEFITS

Our mortgage insurance is designed to anticipate many of the financial bumps in the road that you may encounter, the events that might cause you to default on your mortgage and lose your home. Mortgage protection insurance is the first policy every family should get. It is the maximum coverage for the best premium.

Click here to read about the many riders and member benefits of Foresters' mortgage protection insurance.