Mortgage Protection for Dummies

[WinoBlues]

OK, a client and her sister bought homes recently. I have permanent policies in both houses. They want MP. Specifically with unemployment riders and possibly DI riders. They are both respiratory therapist. First homes so I am sure they are getting hammered by MP agents. Mortgage = 30 yr, about $350,000.

I figure it is a good time to learn something new.

It has been a very long time since I have done this. My plan is to start with Assurity and build a plan.

1) What are the hot buttons of a MP policy?
2) who are the players?

 

[pfg1]

Good and timely post Wino. I'm watching.

 

[Travis Price]

OK, a client and her sister bought homes recently. I have permanent policies in both houses. They want MP. Specifically with unemployment riders and possibly DI riders. They are both respiratory therapist. First homes so I am sure they are getting hammered by MP agents. Mortgage = 30 yr, about $350,000.

I figure it is a good time to learn something new.

It has been a very long time since I have done this. My plan is to start with Assurity and build a plan.

1) What are the hot buttons of a MP policy?
2) who are the players?

Yeah, I don't know if a lot of companies offer the unemployed rider. Foresters has really great riders and additional benefits and rates, including DI... But they don't offer Unemployment.

I'd be interested in knowing who does.

 

[adjusterjack]

I ran a search and came up with a bunch of discussions. Maybe there is something in them for you to look at.

mortgage insurance against unemployment at DuckDuckGo

 

[shonceman]

I tried to post the brochure, but failed. Anyway, AmAm has a plan called Home Protector that has Disability Income & Critical Illness riders. No unemployment income rider, but it does offer Unemployment premium waiver.

 

[somarco]

Are these folks self employed or W-2? Might not make a difference but I suspect someone who is self employed only makes their search (and yours) more challenging.

 

[Travis Price]

Are these folks self employed or W-2? Might not make a difference but I suspect someone who is self employed only makes their search (and yours) more challenging.

Self employment could matter for riders, but if employed and the below is supported, I'd just write the straight term with waiver of premium

The Unemployment waiver on waivers the premium, not pays the bills. I'd almost say it's not a great add on as healthcare is unlikely to suffer the downturn.

Secondly, if they have DI through their employer, it wouldn't be needed here either. Their employer plan would likely reduce their income based on the life rider or they wouldn't use the life rider, which can be expensive.

Also, the MP DI plan is pretty restrictive. 6 month waiting period, cannot do any work. If they don't have any coverage, okay... It's better than nothing.

That's just a personal opinion, as I don't have all the facts.

 

[DHK]

Mutual of Omaha, last I checked, has the unemployment rider, which would waive premiums for up to 6 months one time during the life of the policy. They also have a disability income rider.

This link appears to be from February 2015, but it does discuss the unemployment rider - which the policy must be in-force for 24 months before unemployment begins.
http://yigagents.com/wp-content/uploads/2015/02/term_life_answers_product_guide.pdf

 

[WinoBlues]

Are these folks self employed or W-2? Might not make a difference but I suspect someone who is self employed only makes their search (and yours) more challenging.

W-2

 

[WinoBlues]

Mutual of Omaha, last I checked, has the unemployment rider,

I thought I remembered reading that somewhere. Thanks