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Facts about buying Life insurance with No Medical Exam, Term Life Insurance protection, and Mortgage Life insurance No Medical exam.

There are many types of Life Insurance.  Some are available with No Medical Exam.  Some no medical exam life insurance plans are available online without contacting an agent.  Other no medical exam life insurance plans are only available with the help of an agent, either in person or over the telephone.  Term Life Insurance No Medical Exam up to $250,000 is the most common,  Some companies offer higher amounts without a medical exam, however a "mouth swab" is normally required to check for tobacco use, certain drugs and HIV.   Term life insurance, Mortgage Protection life Insurance, Whole life Insurance no Medical Exam,  Universal Life Insurance No Medical Exam, Indexed Universal Life Insurance,  Single Premium whole Life Insurance, and "Quality of Life insurance" ™,  are all types of life insurance that may be found available with no medical exam, a mouth swab, or require an insurance medical exam based on age and, or amount applied for limits.  If you are in good health, you can usually get a lower, more competitive rate by taking an insurance medical exam, versus applying for a plan that does not require a medical exam because the no medical exam insurance plans have a built in rating to allow for those that may be aware they have a pre-existing health condition. 

Facts and FAQ about Mortgage Insurance

The term Mortgage Insurance is sometimes used when the life insurance being purchased will be used primarily to pay off a mortgage in the event of death.  You may find This type of life insurance is also referred to as Mortgage Protection Insurance, or Mortgage Life Insurance, or mortgage term insurance.   The Term PMI refers to Private Mortgage Insurance.  Private mortgage insurance is sometimes confused by the homeowner because it's name sounds like the life insurance plan.  This is not Life Insurance.  It helps insure the lender if they have to foreclose.  PMI is required by lenders when the amount of the loan is equal to or greater than 80 percent of the home appraised value.  Credit Life insurance is sometimes offered at closing by the mortgage company.  It is possible that credit life insurance could result in paying off a mortgage in the event of the homeowners death.  However, there are some big disadvantages to purchasing credit life with the mortgage.  First, credit life rarely covers the entire length of the mortgage.  Often only for a limited term like 7 years.   Secondly, the premium is usually financed in with the mortgage resulting in higher payments and extra interest being paid for the entire mortgage period.    Thirdly, the primary beneficiary is usually the mortgage company to the extent of the balance of the mortgage leaving no choice, or additional funds for the surviving family members.  Fourth, credit life only covers the loan it was purchased for. If the loan is refinanced, there would still be a debt, but no insurance to cover the debt because the old loan was paid off .   

Q:    What are the chances of losing my home by Fire?
 
A:    One out of 100.

Q:   What are the chances that I won't live long enough to repay my mortgage?

A:   The statistical risk of dying is much greater.

The risk depends on your age at the time you obtained your mortgage. Statistical information obtained from *NAIC Commissioners Standard Ordinary Mortality Tables reveal that the chances of death before completing a 30 year mortgage are:

Age 50: Almost Certain

Age 40: one out of 2

Age 30: one out of 4

  Q:  I Think I'm already paying for this coverage,  How do I know for sure if I'm covered?

  A: The best way to be sure, is to review your policy carefully. If you still are not sure of your coverage, ask your Life insurance Agent to review it with you.   If you never received a policy, or lost your policy, make sure you request a duplicate, Review it carefully and keep it in a safe place.

Often home owners mistakenly believe their Homeowners insurance affords this protection.  Or that the premiums they are paying for PMI affords this protection

            The names are very similar, but actually insure two completely different things.

PMI on your loan is Private Mortgage Insurance to indemnify your Lender should you fail to make your mortgage payments as agreed. PMI helps you into home ownership with little, or no money down. It is usually required by your lender if the loan on your home will exceed 80% of the appraised value.  It does not prevent the loss of your home from foreclosure and does not pay off your mortgage in the event of your death or disability.

Government Home Guaranty services like VA Loan programs, or FHA loan programs are also "insurance" programs that help you into home ownership with little, or no money down, by indemnifying the lender. They do not protect against the loss of the home when the loan cannot be repaid because of the death, or disability of the homeowner.

Q.     What is the chance my premature death, or disability could cause my family to lose their home through foreclosure?

   A:     Each year in the United States,  approximately  70% of all foreclosures and 85% of all forced Home Sales are due to the death,  or long term disability of the primary family wage earner.

           * source Mortgage Bankers Quarterly