So yesterday I submitted my name to be contacted by the no-medical-exam life insurance company that I read about at another blogger’s website. I was a bit irked when I got THREE return phone calls in as many hours, and called back and left a scathing message that I did not want to receive so many phone calls. A few minutes later the guy called back and apologized, saying that he will inform his business partner not to call me again.
We had a nice chat wherein I asked him some details about their insurance. Then he ran a couple numbers and quoted me some prices. For the 30-year Term the prices were quite reasonable for Denis and me. The whole life was a bit more than I was hoping to spend.
Then in talking with Denis last night, he mentioned the possibility of getting mortgage life insurance instead of another life insurance policy. Mortgage life insurance basically pays off the house when one of us dies. So, our current term and whole life policies will go strictly to pay off remaining debt, estate administration/funeral expenses, and then the bulk would go into a bank account to help the surviving spouse support the family.
I found a mortgage life insurance company online last night that ALSO offers the perks of having the life insurance continue even if you move into a new house, and also having ALL of your premium payments get returned to you if you life the entirety of the mortgage life insurance term. So, if we get a 28 year term life insurance on our current house, then if we are both alive at the end of the 28 years when the mortgage is paid off, we’d get back EVERY DOLLAR OF OUR PREMIUM PAYMENTS BACK. That would be AWESOME.
So obviously there is a bit more to look into. I think I’m going to call the no-medical-exam guy back and tell him we’re not interested at this time, but may call back at the end of the year. Then I’ll begin looking more closely at mortgage life insurance and just what that entails.
Man, sometimes being an adult sucks. Whatever happened to the good old days when all I cared about was which club I’d hit on Friday night with my friends?
This is what you wrote:
“So, if we get a 28 year term life insurance on our current house, then if we are both alive at the end of the 28 years when the mortgage is paid off, we’d get back EVERY DOLLAR OF OUR PREMIUM PAYMENTS BACK. That would be AWESOME.”
I tried explaining to you last night when I read this that we would get the entire RIDER payment back if we survive and pay off our mortgage. NOT the entire PREMIUM. Not sure what that extra rider costs, that you have to find out.
It doesn’t make any sense for an insurance company to give you all your money back if you don’t make them pay out. They would never make any money.
Make sense now? Hope so.
No Denis, you are wrong. Here’s what the website said:
—————————
Return of Premium Savings
Mortgage Insurance can give you a “Virtual Savings†account by refunding every penny of the premiums you have paid into the policy…
Keep your Mortgage Term Insurance policy to the end of the term and get all the money you paid returned to you; or borrow from your Mortgage Term Insurance policy since many have a “virtual savings†feature where you can access cash.
One of the most unique features of our Mortgage Term Insurance policies is the Return of Premium Rider that refunds every penny of premium when you live to the end of the policy term. This money comes directly back to you tax-free.
—————————
Basically, what this is saying is that you have to BUY THE RIDER to be eligible to get back all of your premium payments. If you don’t buy the rider, you don’t get back the premium payments.
Okay. I misread it. I’m still misreading it, but what you say makes more sense at least. I still don’t know how they do it and stay in business.
I know that these offers often sound very tempting and promising, but you’d better be careful. The need for requisite medical examinations prior to obtaining life insurance has come under some scrutiny. This sentiment has been perpetuated by the numerous companies providing insurance products without a medical as a clever attempt at attracting prospective customers. Many insurance companies offer preferred rates to individuals whom are in good health and possess favorable family health histories. An insurance company can only make this assessment if they obtain the necessary medical information.
Moreover, providing insurance companies with all the necessary underwriting information up front shortens claim processing periods. So please do think twice before you sign a contract.
Hi Jaynee! You are right, some people consider mortgage life insurance an excellent choice. Actually, there is wide range of insurance companies providing such product. Just take carefully into consideration all aspects. Some handy tools and tips might be helpful. On my website long term care insurance Ontario you will find some tips on mortgage insurance and also calculator, which enables you to quickly compare offers!
Canada life insurance’s last blog post..AIG Life can be a great fit