Note that these riders are also typically available on regular term life insurance policies. Check the rider for specific rules and timelines.

Return of premium: The return of premium life insurance rider would return the premiums you’ve paid after a certain number of months.With a life insurance with living benefits rider, you can access money from the policy’s death benefit if you’re diagnosed with a terminal illness (often defined as a life expectancy of 12 months or less). You may have the option of adding life insurance riders to your mortgage protection policy, such as: Mortgage life insurance generally does not require a medical exam and it may have no health questions, either.įor those with medical conditions, mortgage life can be an alternative to traditional life insurance that uses health as a factor in pricing. That may also be the case if you buy other types of coverage and specify that you want proceeds spent on paying off the mortgage, but mortgage life insurance benefits go directly to the mortgage lender. Mortgage life insurance can give you and your family peace of mind that the mortgage will be paid off. It won’t help pay final expenses, childcare and future education costs, which are other reasons people often buy life insurance.Ī mortgage life insurance policy’s death benefits go to the mortgage lender directly, so loved ones won’t receive the money. Unlike other types of life insurance, mortgage life insurance is in place solely to pay off what’s left on your mortgage. Mortgage life insurance covers your mortgage if you were to die. If you don’t like those restrictions, a standard term life insurance policy for the life of your mortgage with a face value of at least the amount of your mortgage may be a better bet. That means your loved ones won’t be able to use any death benefit funds for other common needs when people die, such as final expenses, future education costs, childcare, paying off other debts and providing an income for the surviving spouse. The biggest restriction on mortgage life insurance is that your loved ones won’t get a death benefit, but it will instead go to the mortgage lender. Your beneficiaries can use a term life insurance death benefit for anything, so if you feel paying off the mortgage is most important, you should clearly state that in your will. If you were to die during the policy’s term, your beneficiaries receive the death benefit, which they may choose to use to pay off the mortgage. You could choose a regular term life policy with a face value that’s at least the amount of the mortgage that you still need to pay.

This differs from a standard term life insurance policy, which is another option if you’re looking for a life insurance policy to help pay off your mortgage if you die. Money does not go to your family with this type of life insurance. This means the insurer will pay your lender the remaining balance on the mortgage if you pass away. The mortgage lender is the beneficiary of the policy, not your spouse or other person you choose. If you buy it from your mortgage lender, the premiums can be rolled into your loan. Mortgage life insurance is usually sold by the mortgage lender, an insurance company affiliated with your lender or another insurance company that mails you after finding your information via public records. The policy’s length will coincide with the number of years you have to pay off your mortgage. If you buy mortgage life insurance, you’ll typically purchase it when you buy your home or shortly after.

Rbc home protector insurance premium