What companies still offer “actual” Mortgage Life Insurance policies?

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Unfortunately, there is some extensive health history that prohibits the application of such traditional Term/Whole life solutions. From what I understand, actual Mortgage Life Insurance is a decreasing plan (following the decreasing principle of your loan) that is shared by both borrowers and designed only to pay off the mortgage in the event one or both borrowers dies.

Can you give me the names, ph#, email, URL, to any companies that offer this specific insurance product?

I have already asked my lender, loan servicer, and about 100 different B.S. online quotes 🙂 Thanks.
Just to be crystal clear…I am not looking for Term Life Insurance, Whole Life Insurance, Variable, Universal, or any other typical live insurace vehicle. Eventhough the insurance industry has muddiedthe definiton; “Mortgage Life Insurance” is a specific product in it of itself.

8 Comments
  1. Reply
    blb
    May 2, 2011 at 8:35 am

    Mortgage life insurance is still going to ask all the same medical questions and also underwrite you for the health problems. A mortgage life policy is just a decreasing term policy. It is actually in your best interest to take out a term insurance policy that will keep a level death benefit.

    State Farm used to offer a mortgage life policy. Not sure if they still do.

    Call a life insurance agent (don’t bother with the online stuff) and see if they have a product available for you.

  2. Reply
    Mark S
    May 2, 2011 at 8:36 am

    Primerica is a company that offers decreasing term insurance. This is what you would call mortgage insurance. But you would have to qualify for health questions. Think about it, you are looking at a large amount of money. The co. wants to be sure that they pay out as little as possible. They want healthier individuals to be policy owners. So, you are looking for decreasing term insurance. Look in your yellow pages for Primerica.

  3. Reply
    nickeli86
    May 2, 2011 at 8:51 am

    Realistically, the product you are talking about is, in reality, simply a decreasing term life policy. I know that it has been marketed as a mortgage life policy, but this is not accurate and never has been. It’s a term policy taken out against the owners of the property which would use the death benefit to pay off the mortgage rather than pay to an individual beneficiary, should one or both of the owners pass away.

    It might be in your best interest to look at various options that would serve the same purpose and possibly offer more flexibility based upon your needs.

    Most life insurance companies have some product that fits this criteria. If you want to give me some specifics with regards to amounts and location, I can see if I have any contacts to assist you. I am only licensed in California, but don’t mind making a few calls to find someone out of California if need be.

    Good luck!

  4. Reply
    Jeff C
    May 2, 2011 at 9:28 am

    Its pretty funny that not a single person answered your question except for some pea-brained, probably junior-level life insurance schleps!! Typical ins j.o.’s that don’t know squat!

    I know exactly what you are talking about… Here’s the thing…. Usually this type of policy is taken out at the time you fund your mortgage. The policy is a shared “survivorship” policy where the death benefit reduces with the principle amount of your mortgage…all the while the insurance premium stays the same. Upon death of one or both spouses, the mortgage is paid off. Pretty simple. For most people, this type of insurance is more expensive and less effective because the death benefit reduces. BUT…if you have poor heatlh and have been turned down for other types of life insurance, you can still get this. It may be more expensive, but it will CYA…. The biggest difference between the life insurace these other yahoos are describing and “true” Mortgage Life Insurance” is that it is GUARANTEE ISSUE. Okay, so you already knew all of that; which is why you asked the question in the first place… This was for the other retards that refer to themselves as financial planners…like the idiot saying that Mortgage companies cannot issue insurance and vise versa…I wonder if her ever heard of Counrtywide, Chase, or CitiCorp for starters? IDIOT. I hate these CFP that think they know what the heck they are saying because they passed a silly test. The bad news is that if you already have your mortgage…it may be too late. The aforementioned companies issue at funding. Considering you already asked your lender/servicer and struck out…I would try doing a google search for “Credit Insurance” policies too. Same thing, different name. I don’t know what specific companies write these, but I know they are out there.

    Don’t listen to these foolish Insurance Agents…do your own research. The only reason they even have a job is because of consumer ignorance! You sound like a smart guy…you can do it!

    Happy Hunting.

    p.s. sorry for the curt tone…I hate dumbass insurance salesmen that don’t know their a$ $ from a sinking fund; all the while assuming a consumer is as dense as they are.

  5. Reply
    Matt1331
    May 2, 2011 at 10:03 am

    The only Mortgage Life Insurance policy I have ever written I wrote with Auto Owners. You can go to their website and they will refer you to a local agent.

    As others have said a Mortgage Life Policy is just a decreasing term policy, they are still going to ask the same questions and have the same requirements that traditional products do.

    Good Luck!

  6. Reply
    MARK S
    May 2, 2011 at 10:09 am

    Actual mortgage life is just a fancy word for decreasing term insurance and if you want it shared by two people then you get a rider usually called “first to die”. It’s all life insurance. Call it what you want. When somebody dies then a death benefit is paid, it’s life insurance. The rider costs money so yes it will be more expensive. Also if there are health issues then the policy will be rated. Meaning the cost will be more than a person with excellent health. Mortgage companies sometimes do offer “mortgage life” (decreasing term) but it will be with a joint venture with an insurance company and the insurance company issues a “decreasing term life” with a “first to die” rider. Mortgage companies can’t sell life insurance and vise versa. Although that has recently been changing. Also on these joint ventures the beneficiary is the mortgage company, which is not in your best interest.

    There are life insurance companies who specialize in substandard risks out there and will consider people with health issues.

    So your “actual mortgage life” is a traditional decreasing term life with a rider and if there are health issues will be rated.

    Also regarding the answer by Jeff C. He is every bit what he is calling the other people who answered. He is the dumb ass. His 20+ yrs of “8-figure” asset mgmnt, notice the “8-figure” thrown in has to be in Mexican Pesos.
    Isn’t there a saying something like people who live in glass houses shouldn’t throw rocks. Oh well, maybe that isn’t the one but I know there is a saying for people like him.

  7. Reply
    aaron p
    May 2, 2011 at 10:10 am

    Your lender is usually just interested in the loan and most (please, not all) online reps just know how to spreadsheet. Mortgage life policies are not issued on a guaranteed basis that I know of.

    Personally, I would really question whether you needed true guarantee issue (being turned down by one or two companies mean nothing to me). You should find an independent agent who knows how to place your type of risk appropriately. Unfortunately, if you do need guar. issue or near-guarantee issue, you might have limited options depending on your state and the face amount you actually need. *If* that’s the case (and I would personally question it seriously), then check out Cotton States, Gerber, Presidential, and Fidelity Life Association.

  8. Reply
    Holger J
    May 2, 2011 at 10:46 am

    You seem to be asking for Credit Life Insurance. It is issued on a guaranteed issue basis, I believe now that you have closed on your loan it may be difficult to find and if you do it will be very expensive.

    You mention that you have an extensive health history, a history may not completely eliminate you from a competitive life insurance rate. You may not get the best rates but you may be offered coverage at rates lower than Credit Life Insurance. I would recommend you see a local agent who can take some time with you an shop your situation to multiple carriers. If you need some direction let me know, I work with 2500 independent agents and can get you directed to someone who can help. You can contact me through my site: http://purchaseandsellinsurance.blogspot.com/

    On a technical matter, the mortgage company or creditor is not providing the insurance. They may own an insurance company, but by law the insurer must have a wall of separation and is unable to pass its obligations(claims) to its parent corporation. Keep in mind an insurance company must keep in reserve a dollar for each dollar of obligation. It really does not matter what name is on the insurer’s parent (CITI, Chase, Countrywide) , they will not pay only the insurance company is responsible for its obligation. Profits flow up but not obligations.

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