Everyone knows, at least in theory, that they should have a will or some kind of end-of-life document. But many people leave it at that (if they even get around to that much). Estate planning is an entire process with many components, and a will is only one part. Life insurance can and should be another. If you feel like life conventional insurance is too expensive or too restrictive, mortgage life insurance might be the best option for you.


Why You Should Add Insurance To Your Estate Planning Checklist

In popular television dramas, life insurance is often some nefarious relative’s motive to commit murder. It’s also sometimes the only thing ensuring your next of kin an inheritance. 

Life insurance is a policy held with an insurance company that guarantees a payment to your beneficiaries in case something happens to you, if you pay your premiums. No one likes to think about their life ending or becoming disabled, but it’s imperative to plan ahead so that your affairs are in order in case of an accident. 

Expenses related to the passing of a loved one might include:

  • funeral and final expenses
  • debt repayments
  • income replacement for surviving relatives

Life insurance can provide that money. However, finding the best life insurance isn’t easy though: even wading through the available options can seem like an impossible task. 

 

How Does Life Insurance Work?

Policies can vary depending on what you qualify for, which is determined by your current health and behaviours. If you engage in what is considered a risky behaviour like motorcycle riding, that can affect your life insurance policy. You can be denied a policy based on different factors that the insurance company thinks create a liability: that is, they think they’ll be more likely to have to pay out your policy and want to minimize that. 

Common reasons for denial can include:

  • heart disease
  • diabetes, obesity
  • chronic conditions like multiple sclerosis
  • drinking
  • drug use

It doesn’t seem fair that people who might be most in need of insurance can’t get it, but fortunately, there are alternatives. 

 

What Should I Do If I Don’t Qualify For Life Insurance?

Being denied an insurance policy can be frustrating and scary. You want to protect your family, and it’s often not your fault you didn’t qualify. While it’s possible to find other companies to underwrite or amend a policy for you, they often come at a higher cost. In these cases, it may be easier to look at different models altogether. That’s where mortgage life insurance comes in. 

In the event of a tragedy, one of the biggest expenses for a family is housing. Being able to pay the mortgage could mean anything from maintaining a family’s quality of life to literally keeping a roof over their heads.

During a traumatic event like the loss of a loved one, many people aren’t in a place to make sound financial decisions, and having the mortgage payments covered could provide the necessary stability to ensure a strong future for your family. 

 

Did You Know?

Studies show that adverse childhood events like the loss of a parent can raise the risk for mental health issues and addiction, and more importantly, those events can compound. Stability during a traumatic event is imperative. 

 

Mortgage life insurance is a life insurance policy designed solely to cover the balance of a mortgage. Often provided by banks at the time of a home purchase, they can have certain pitfalls. Using a more affordable mortgage life insurance service like 20/20 Mortgage Life Insurance can avoid these. 

How 20/20 Helps You Avoid The Pitfalls of Bank-Offered MLI

 

1. You Can Name Your Beneficiary

As with a traditional life insurance policy, you can designate who receives the payout. A bank-held mortgage life insurance policy does not allow you to do that; the payment goes straight to the bank to cover the mortgage balance. 

20/20 is similar to a conventional life insurance policy in this way. While the amount of the payout is determined by the mortgage balance, your family can choose to use the money for funeral expenses or other debts if they choose. 

 

2. You Qualify More Easily

20/20 asks you a handful of questions to determine eligibility, rather than requiring an intrusive medical exam. You can have a quote and approval in under ten minutes. 

20/20 is also more affordable than a mortgage life insurance policy through a bank or a specialized life insurance policy for “high risk” applicants due to lower overhead and streamlined online processes.

 

3. 20/20 Makes Moving Simple

20/20 Mortgage life insurance is not tied to the bank that initially gave you your mortgage. Because of this, if you do need to move, your policy comes with you. You don’t need to re-qualify, as you would if the bank held the policy. 
This is helpful as you get older and may wish to downsize, or if you develop health problems that could impact your eligibility for traditional life insurance. 

 

Get In Touch With Our Team Today

While having a will is an important part of the estate planning process, life insurance can ensure there’s something to pass on. 20/20 Mortgage Life Insurance can make sure you’re covered. Get a quote now with our easy-to-use mortgage insurance calculator, contact us by email, or give our team a call 1-866-617-9620.

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Posted by AIME Financial

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