How to Be Approved for Life Insurance with Epilepsy

Life Insurance Coverage with EpilepsyPeople who have epilepsy face enough challenges in their life.  This is especially true with the regrettable stigma that comes with epilepsy, because this negative perception is unfortunately one borne out of ignorance and lack of understanding about the disease.

Epileptics also have to often confront this prejudice when applying for life insurance.  Many people in the insurance industry also have limited knowledge about the disease, and may even lump all epileptics in the same mold.

If you are uncertain whether you can qualify for life insurance, or whether you are being charged fairly for the life insurance rates you presently pay, let’s look at how it really works.

Basic Facts about Epilepsy

Epilepsy affects roughly 1% of the population.  Clearly, not all epileptics are the same as there are a range of conditions and different types of epileptic disorders that affect how insurance companies rate people with epilepsy.  Their decision on how they rate your condition mainly depends on how well your seizures are under control, and how long ago was your last seizure.

Life insurance companies look at the normal life spans of people and how certain diseases may affect a person’s life span.  It is a simple fact that the vast majority of epileptics live a normal life span the same as the rest of the general population.  Lastly, with today’s medical advancements, most epileptics have their seizures largely under control.

Like any other disease, if you are receiving treatment, following your doctor’s instruction, then you largely have the disease under control like any other disease.  If this is the case then you should be treated appropriately by the insurance company.

What Insurance Companies Want to Know About your Epilepsy

When applying for life insurance,  the first thing you should always do is to be completely truthful.  Don’t fudge the truth – ever!  It doesn’t pay and you could either end up being denied coverage, or your family could end up being denied benefits if the company learns you weren’t truthful.

Also, insurance companies share information through the MIB (Medical Information Board), which includes life insurance applications.  They do so to prevent potential fraud.  Lastly, your medical records will likely be accessed, so the bottom line is to always be truthful.

The main questions the insurance agent will want to know or should be asking includes:

  • When were you diagnosed with epilepsy?
  • What type of condition do you suffer form and how strong is the condition?
  • What treatment and neurological assessments have you had?
  • What type of seizures do you have such as Petit Mal, Grand Mal, myoclonic, atonic, simple partial, complex partial, febrile, reflex or nocturnal?
  • When did you last experience a seizure?
  • How many seizures do have during the course of a year?
  • How long do the seizures last, and have you ever had one which lasted more than 30 minutes?
  • What medications are you taking?
  • Are there any other additional health factors?

How Severity of Epilepsy Affects Life Insurance Rates

Not only does the type of epileptic condition affect how a company will rate you, it will also depend on when you had your last seizure.  Unfortunately, milder varieties of epilepsy will put you in better standing so it works roughly like this for many insurance companies;

Less Severe Epilepsy

If you have been diagnosed with seizures such as Petite Mal, Myclonic or Absence, and have not had a seizure in the previous 2 years, there are life insurance companies that will give you standard rates.  Not all of them mind you so you need to be aware that not all companies will treat you equally.

However, if you have had a seizure within the past 2 years you will likely have to pay a higher premium.

More Severe Cases

If you’ve been diagnosed with Grand Mal or tonic-clonic seizures, it may all depend on well controlled they are, and whether you have had any seizures within the past 5 years.

If you haven’t had a seizure in the past 5 years, and the longer the better, the more favorably you will be viewed for the insurance rating.

There are some companies that will consider a standard rating if you have been seizure free for 5 years or more, and that’s good news for those afflicted with the more chronic forms of epilepsy.

How to Find the Best Life Insurance Rates

The important thing to know is that not all life insurance companies are the same, and do not treat epileptics the same.  So, how do you find the best rates if your have epilepsy?

First, don’t apply directly to an insurance company itself, because you are automatically limited to their particular policies.

Second, go to an insurance agent, but not just any insurance agent.  There are two types of insurance agents.  Some insurance agents represent only a single company or several insurance companies.  These company agents will limit your ability to shop around.

The best way to find the best and most affordable insurance rates if you have epilepsy is to use and independent insurance agent such as myself.  Why?  Because what I can do is put your policy out to bid to many different companies and find you the insurance company that will treat you fairly.

If you have an existing life insurance policy you should also ask yourself whether you are paying the best rates because maybe you are paying too much already.  I can help you there as well.

Life Insurance for People with Diabetes

Life Insurance DiabetesAt Huntley Wealth Insurance, we offer the lowest life insurance quotes for people with diabetes.  Where some companies decline diabetics for life insurance or give them substandard ratings, we routinely help our diabetic clients obtain approvals at standard or better ratings.

Cost of Life Insurance with Diabetes II

In many cases, if your only health issue is diabetes (Type II), you can obtain a Standard approval from at least a half dozen life insurance companies we work with.  To see “standard” quotes, use our quote form on the right, and request a Standard quote.

Many factors will affect the cost of life insurance with diabetes, one of which is complications resulting from diabetes.  Some complications you may experience after having diabetes for a many years are neuropathy (damage to the nerves, most commonly affecting the legs and feet), eye complications, and heart disease.

If you have experienced any of these complications, this will hinder you from obtaining excellent life insurance ratings.  However, you still may be able to qualify for a substandard rating, a no exam diabetes policy, or at the worst, a guaranteed issue policy.

Factors Affecting Diabetics’ Insurance Premiums

A few other key factors which will determine your health classification, and therefore how much a diabetic will pay for life insurance premiums, will be time since diagnosis, average glucose reading/control, and current age.

Generally speaking, the longer someone has been diabetic, the greater the risk of developing complications.  So it’s much safer for a life insurance company to offer great rates to a diabetic who has been recently diagnosed (say in the past 5 years) than one who has had diabetes for 10 or 20 years.

Age of diagnosis is closely related to time since diagnosis.  The 65 year old who has had diabetes for 10 years will probably obtain a much better health classification than a 45 year old who has had diabetes for 10 years.  Most insurance companies penalize you for being diagnosed prior to age 50.

Importance of Controlled Diabetes – Blood Glucose Levels and A1C

Equally important to a life insurance underwriter is how well controlled your diabetes is.  This is measured by taking an average of your glucose readings, or if available, checking your hemoglobin a1c level.  While your glucose reading provides insight to current blood sugar levels, the a1c measures your average blood glucose control for the past 2 to 3 months….(continued on page 2)

Term Life Insurance for Male Smokers

Term Life Insurance for Male SmokerAt Term Life Insurance for Males, we offer the lowest term life insurance for smokers rates from over 100 highly rated life insurance companies.

Using our quote form on the right, you can quickly compare smoker rates and find that we have the best prices anywhere.  This is because while most online term quote companies offer pricing from 20 to 30 companies, we quote from over 100.

In fact, if you find a smoker rate at another company that appears to beat us, please leave a comment with the company name, and we’ll be sure to add that company to our quote form, as we are committed to offering the best life insurance for smokers.

Cost of Term Life Insurance for Smokers

If you’ve done any research on the effect smoking cigarettes has on life insurance premiums, you know that smoking increases your premium by about double or more.  Please find sample quotes for male smokers below, who can qualify for “preferred tobacco” rates below.  Quotes are for 20 year term life insurance and based on Monthly Premiums.

Age                                                    $100,000           $250,000
40 Year Old Male Smoker          $31.15                    $66.38
45 Year Old Male Smoker          $47.08                   $108.02
50 Year Old Male Smoker          $67.85                   $159.72
55 Year Old Male Smoker           $105.34                $253.44
60 Year Old Male Smoker           $158.75                $373.73

*Note that the premiums quoted above are valid as of 9/2/2011, and are subject to change.

Term Life Insurance for Non-Cigarette Smokers

Wonderful news for pipe smokers, cigar smokers, and chewing tobacco users.  You can actually qualify for Non Tobacco rates with many life insurance companies.  In most cases, you’ll need to test negative for nicotine in your labwork and admit to the tobacco use on your application.  In the case of life insurance for cigar smokers, you’ll also be limited in the number of cigars you’re allowed to enjoy, like no more than 1 per month, or 1 per week.

However, I know of one company who sets no limit to the amount you use these forms of tobacco, and your urine result can also come back positive for nicotine, and they’ll still allow you to qualify for non tobacco rates!  Call us for “Non Tobacco term life insurance for smokers” quotes at 877-996-9383.

Non Tobacco Ratings for Smokers

Some of our smoking clients tell us they want to quit smoking, in order to qualify for non tobacco rates, but the problem is they need coverage now.

Since all U.S. life insurance companies require that you quit smoking for a full year before you can get non smoker ratings, we recommend you take out a policy to cover your needs now, and then if you can quit for 12 consecutive months, you can either apply for a new policy, or apply for a health class reconsideration with your existing insurance company.  This way you only have to pay the higher smoker rates for one year.

Types of Life Insurance Available to Tobacco Users

You are not limited in the types of policies you may choose from due to tobacco use.  For example, you can still purchase a 10 year term policy or guaranteed 20 year term life insurance contract.  The difference is your cost of term life insurance will be higher due to your smoker classification.

Other types of policies available to smokers are 30 year level term insurance, which keeps your premiums level for the entire 30 year term period, and the two most popular types of permanent insurance, which are whole life insurance and universal life insurance.

Also, beware of the compounding effect for medical issues.  For example, some companies such as ING Reliastar may offer standard or better insurance rates for a diabetic.  They also have great smoker rates.  But if you combine the two… a smoker with diabetes may push the health classification down below Standard Tobacco rates, since the combination of the two is very harmful.  Same goes for heart issues.

Smokers Life Insurance Q&A

  • How will the insurance company know I am a smoker? 2 ways.  First of all, they ask you on the insurance application, and secondly, most applications require a brief physical, including labwork, which screens for nicotine.
  • What if I lie on the application and say I don’t smoke? Please do not do this.  It’s insurance fraud for one, and if you die within the two year contestability period and the insurance company finds out you were a smoker, the death claim could rightfully be denied.
  • Can I quit smoking cigarettes until I can test negative for a urine test and then apply for insurance? Unfortunately, you must have quit for 12 consecutive months before you can apply for non tobacco ratings.

How to Purchase Term Life Insurance for Smokers

Click here for general steps on how to purchase life insurance.  This page covers the application process.

The bottom line is if you smoke cigarettes, you will have to pay a higher premium for life insurance, at least for one year, but you don’t want to pay one cent more than you have to.  Your best bet is to speak to a knowledgeable, independent agent about your health history and tobacco use to determine which company will offer you the best term life insurance for smokers policy. Smoker term life insurance quotes can vary so it is best to make sure you get the cheapest rate.

Insurance for Billionaires

Billionaires have a lot of money and don’t need to bother with buying life insurance right?


There are plenty of sound economic reasons why even billionaires should include life insurance when planning an estate.

Life insurance can provide valuable and convenient financial liquidity for your estate and has value as the life insurance proceeds can be used in a variety of ways.  This includes not only for the structure of your estate, but also for your heirs.

Advantages of Including Life Insurance in Estate Planning

The first thing to consider is that a permanent life insurance policy such as whole life or universal life can be used as a valuable financial instrument because it gives you the ability to use a permanent life insurance policy as a form of tax-free investment growth.

A life insurance can be included as a segment of any portfolio which has non-registered investments for the ultra wealthy.  The life insurance proceeds can provide your heirs with non-taxable death benefits and is an excellent vehicle to transfer wealth through more than one generation such as both your children and grandchildren.
Along with the death benefits, permanent life insurance policies also include a cash value accumulation component which can be considered as an asset. Why? If the policy is owned by the insured billionaire or through their company, the cash can be accessed while the billionaire is still alive.

Life Insurance is a Stable Investment

The cash value accumulation segment is a stable investment because there is a long history of life insurance investments providing a fairly stable return which is advantageous in unstable economic times.

Life insurance policies can also be used in a variety of ways with trusts.  This is a detailed topic in itself so you should raise this issues with your financial or tax advisor to get the details.

Another interesting strategic use of a life insurance policy is to combine it with a life annuity, also called an insured annuity, which can offer even higher yields. This approach is better suited for those who older than 65 and have assets which are non-registered.

Life Insurance for Succession Planning

If a billionaire is planning to transfer shares of their business enterprise to their children, then these assets can be subject to taxable capital gains.  This requires that cash reserves may have to be accessed which might require the selling of assets or to borrow money to pay for the capital gains tax.  The proceeds from a life insurance policy allows the children to access cash liquidity through the proceeds of the policy to pay for the capital gains tax.

There is another advantage for this same scenario as some siblings may no longer be interested to be shareholders in the company, and the life insurance proceeds can be used to buy out these non-interested family members.

Other Ways Billionaires Can Defer Taxes with Life Insurance

It’s all about the two indelible truths – Death and Taxes.  When you die there will be estate and other taxes that have to be paid.  When you have this kind of money the taxes can be huge.

With a life insurance policy, the proceeds such as the death benefits also have to be paid to the beneficiaries who can use these assets as immediate liquidity to cushion the effect of the taxes that have to be paid.  This means that they may not have to use the estate’s assets to cover these taxes or can soften the bill.

Many billionaires are also benevolent and have charities which they like to support.  A charity can be named as a beneficiary on a policy and can be used as a non-taxable bequest to one or more charities.  A life insurance policy might be a preferable vehicle instead of simply transferring wealth from the estate to a charity.

Benefits of Life Insurance in Wealth Transference

There are also tax advantages if a billionaire wishes to transfer their wealth to either their children or grandchildren.  Since the proceeds are non-taxable, a life insurance policy is a convenient means to pass financial security to their children, or grandchildren…(continued on page 2)

Life Insurance with History of Heart Disease

Life Insurance with Heart DiseaseWhen most people search for life insurance with history of heart disease on the internet, they are referring to coronary artery disease, or CAD.  However, there are multiple types of heart disease that may affect the heart muscle, valves, electrical system, as well as your arteries and veins, and more.

Regardless of the type of cardiac disease you’ve had, we at Huntley Wealth Insurance are the experts at finding affordable term and whole life policies.  The purpose of this article is to discuss the various types of cardiac issues people have, and your insurance options for each.

In each case, your ability to qualify for life insurance will depend on how your heart disease was (or is) treated, and compliance with prescribed medications and regular check-ups with your cardiologist or attending physician.

Life Insurance with Coronary Artery Disease

We’ve had a lot of success insuring our clients with a history of coronary artery disease, which is a condition where the arteries that take blood to the heart harden and become narrow.

With blood flow being restricted to the heart, this condition leads to heart attacks, and is the #1 cause of death in America for both men and women.  Your ability to secure affordable life insurance with a history of coronary artery disease will depend on several factors.

  1. Treatment/Severity – For some people, treatment will be nothing more than a change in diet and adding a blood pressure or cholesterol medication.  For others, stenting or bypass surgery may be required.  Better offers are available to clients with milder forms of CAD.
  2. Early Diagnosis – Was your heart disease caught early or did it lead to a heart attack or angina?  The important factor here is whether damage was done to your heart.
  3. Degree of Stenosis – A life insurance company will want to know if other vessels were blocked/stenosed, and to what degree.  Obviously, the lower percent of blockage, the better for life insurance purposes.
  4. Follow Up – Regular cardiac check ups are a must.  Your odds of securing affordable life insurance will increase dramatically if you’ve had favorable cardiac testing, such as a stress echo test, echocardiogram (EKG), EBCT or angiography.
  5. Other Risk Factors – Some risk factors associated with coronary artery disease, and just about any type of heart disease for that matter, are high blood pressure, high cholesterol, being overweight, smoking, lack of exercise, and diabetes.  When you compound your history of heart disease with these risk factors, you are much less likely to qualify for life insurance.

Life Insurance with Other Types of Heart Disease

We have also obtained excellent life insurance offers for people with valve disease and heart diseases affecting the electrical system.  As for valve disease, the three main types are stenosis, regurgitation and prolapse.

In some cases, you can qualify for coverage with mild cases of valve disease, but most of our clients come to us after having valve replacement surgery or valve repair surgery.

After valve surgery, you can expect to be approved in the Standard to Table 5 range, assuming the treatment was successful and no other risk factors exist.

You may have a disease affecting the electronic signals in your heart.  This may cause your heart to beat too fast or too slowly, or with irregularity.  Of these, the most common types we see are atrial fibrillation (or arrhythmia), sinus tachycardia, and sinus bradycardia.  Treatment may include medication, a pacemaker, or surgery.

Atrial fibrillation is not nearly as problematic as ventricular fibrillation.  If the atrial fibrillation has not required hospitalization in the past two years and is under apparent control, you can almost certainly be approved for affordable life insurance with this heart disease.

Defibrillator – When a patient has had a more serious history of arrhythmias, sometimes they get a defibrillator implanted in their heart (ICD), which treats life threatening arrhythmias.  Anyone with a defibrillator will need to apply for a simplified issue or guaranteed issue policy.

Congestive heart failure – It’s not impossible to be approved for traditional term or whole life insurance with congestive heart failure, but depends on the severity how time elapsed since diagnoses.  With recent diagnosis and excellent control, (no fluid buildup in lungs, feet, or legs) you may be approved at a substandard rate.  Your alternative is to purchase a simplified issue or guaranteed issue policy as explained below, if you can’t qualify for a traditional policy.

Simplified Issue and Guaranteed Issue Life Insurance for Heart Disease Patients

In some cases, heart disease is just too risky for a traditionally underwritten policy, and you’ll have to go with a simplified issue or guaranteed issue policy.  These policies may be available in 10 or 20 year term policies or whole life.

In both cases, the death benefit will only pay out return of premium plus a percentage, such as 10 to 20%, during the first 2-3 years, known as a graded death benefit plan.  Fidelity Life Association has wonderful graded benefit term and whole life plans.

These policies may have five or six medical questions you need to be able to answer no to in order to qualify, in the case of simplified issue.  In the case of guaranteed issue, there are no medical questions to qualify.

Regardless of your type of condition, Huntley Wealth Insurance offers the most options and most expertise for people who need life insurance with a history of heart disease.  Please call us at 877-996-9383 for quotes or use our instant quote form on the right.

Life Insurance Approval with Congestive Heart Failure

If you go to your run of the mill agency like State Farm or Farmers Insurance, you won’t have a chance at being approved for life insurance with congestive heart failure.  We have, however, obtained many successful approvals with this heart condition and many other types of impaired risk cases.

Two Types of Approval

An individual with congestive heart failure may qualify for two types of insurance:  traditional life insurance or graded death benefit life insurance.  Traditional coverage will require a medical exam and is usually much less expensive.  You will need to be in better health to qualify for this type.

The key to a traditional policy approval will be a recent echocardiogram, treadmill stress test, or cardiac catheterization showing that the heart is not overly enlarged, and the left ventricular ejection fraction (LVEF) is still within acceptable levels.

The ejection fraction measures how efficiently the left ventricle pumps the blood.  Normal is around 50% to 60%.  But in people with heart failure, the ejection fraction drops, sometimes into the 40’s, 30’s or even 20’s.  It will need to be in the 40’s to have a chance at a traditional policy.

Your odds are also better of being approved if you are a non smoker, at a good weight, with no other health issues, such as diabetes.  The insurance carriers will expect that you will be on medication to control your blood pressure, so that’s okay.

Graded Death Benefit

If your heart failure is in later stages, your ejection fraction may be lower than this, and your only option will be to apply for a graded death benefit type of policy.

This type of life insurance is far easier to qualify for.  As long as you haven’t been confined to a nursing home or had a heart attack or transplant in the past 2 years, or currently hospitalized, you can potentially qualify for this coverage.  There are other qualifying questions related to other medical conditions, but those are the only conditions as it relates to your heart.

A graded death benefit policy works a bit differently than traditional, in that you don’t need to have a medical exam, and they won’t order your medical records, so it’s much quicker.  However, it is also more expensive than the traditional variety.

The term “graded death benefit” is also very important.  It means your death benefit is reduced during the first 2 years of the policy.  For example, if you have a policy with a $50,000 death benefit, the benefit might only be $5,000 in the first year, $10,000 in the second year, and then $50,000 thereafter.  The most popular and reputable company offering graded death benefit life insurance is Fidelity Life Association.

Types of Life Insurance Offered by Fidelity

One of the nice things working with Fidelity’s impaired risk products is they have their graded policy, which is a whole life policy, which builds cash value.  But what is unique is they also offer a lower cost type of insurance called term, which keeps the premiums fixed for the duration of the term.  For example, they offer 10 year term, 20 and 30 year term policy, which also has the first 2 years as a graded benefit.

To get started with a life insurance quote with congestive heart failure, simply fill out our quote form on the right, and tell the representative who contacts you about your entire health history.

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Little Known Facts about Life Insurance Approval with COPD

Life Insurance with COPD - Lung PhotoCan you get good life insurance rates if you have COPD?

Yes!  How you’re rated all depends on the severity of your disease.

Not sure where that includes you?  Read on and learn more.

Where do you start… with COPD?

First off, when applying for life insurance with COPD, make sure you use an independent insurance agent only.  Independent agents can look at all the insurance companies out there.  Non-independent agents only represent one of several companies.

You won’t get the best deal with a company or “career” agent.  What’s even worse, you could be denied coverage, and give up.

Second make sure this agent understands COPD, and is experienced enough to underwrite COPD.  This disease is a special situation and you want to get the best information, the best coverage, and the most affordable rates.

What Does the Insurance Company Want to Know?

COPD is a chronic disease.  It can appear in a milder version where you have occasional bronchitis that is manageable with medication.  Or, COPD can be extreme and entail emphysema where the lungs are permanently damaged.

This means the insurance company will want to know exactly what stage of COPD you have.

Another key issue is whether you smoke, and continue to smoke after being diagnosed.  Quitting smoking slows the progression of the disease.  Insurance companies will look at you more favorably if you quit and the longer, the better.

The basic medical information the insurance will want to know about you includes;

  • The date you were diagnosed with COPD
  • Any lung diseases you might have (Means bronchitis, asthma or emphysema)
  • Whether or not you’ve stayed in a hospital because of COPD (includes the details and dates)
  • Medications you being prescribed
  • Date and results of any chest x-rays
  • Date and results of any ECG taken
  • Any other complicating health factors

The more detailed medical information that insurance companies may want to know which measures your COPD includes:

1. Chest x-rays and/or blood work.

2. Pulmonary Function Test (PFT) – This test measures how much oxygen your lungs can hold, and how fast you move oxygen to and from your lungs. It also measures how well you take in oxygen, and how quickly carbon dioxide leaves your blood.

This test also determines how seriously you are impaired with COPD, and how effective is the treatment.

3. Forced Expiratory Volume (FEV) – It measures how well you expel air forcibly during time intervals of 1, 2 and 3 seconds shown as FEV1, FEV2, and FEV3.  The total amount of air expelled through this 3 second time frame is called your Forced Vital Capacity (FVC).

How Severe is your COPD?

Insurance companies will rate the stage of your COPD.  Other complicating factors may include whether you are a smoker, your age, and other additional health issues.

COPD is largely defined as being mild, moderate, severe, or extreme.  Roughly, this measurement can be seen as:

  • Mild COPD – You might have a mild cough which is chronic and some minor shortness of breath after performing moderate exercise.  Your PFT is generally near normal, and you receive little or no treatment.
  • Moderate COPD – Evidence of increased coughing and a shortness of breathe after performing mild exercise.  Your PFT is below level, and there may be some evidence of chest abnormalities revealed in your x-ray results.  You also require the occasional use of an inhaler or some other form of treatment.
  • Severe COPD – You experience shortness of breath and coughing from minimal exertion or simply from your regular daily activities.  Your PFT is markedly below normal.  Lung abnormalities are very evident and your pulmonary function is also decreased.  Severe COPD patients require regular use of an inhaler, must take steroids and other forms of medication.
  • Extreme COPD – Means you are virtually disabled and cannot perform regular daily activities.  Shortness of breath is experienced even while at rest and requires oxygen apparatus.  Lung abnormalities are very pronounced and you are very much housebound, use oxygen regularly and other medical treatment.

How Will an Insurance Company Rate you?

The biggest test is how well you can breathe and this depends on the Pulmonary Function Test (PFT).  The better you perform, the better you will be rated, and the lower the premiums.  It also depends again on smoking, BMI, age and your overall health.

For mild cases, a mild substandard rating, such as Table B, (which costs 50% more than the “standard” rating), may be achievable.  For a moderate case, table D to F may be possible (100-150% on top of the “standard” price).

Most severe cases will be declined, but you may get an offer through a guaranteed issue policy.  The healthier you are, the better you are rated.  It’s just that simple.

Bottom Line

You can mainly find life insurance coverage if you have mild, moderate or severe COPD.  The healthier you, are the better you will be viewed.  If you have extreme COPD, then getting coverage becomes much more challenging and very expensive.

Call us for a COPD quote at 877-996-9383.

Pros & Cons of Mortgage Life Insurance

Is mortgage life insurance really a good investment?

Some people think it is and buy mortgage life insurance to protect the mortgage on their home.

It’s offered through the banks or other lenders when you are buying a home and apply for a mortgage.  But, did you know that mortgage insurance has a number of different disadvantages you might not know about?

There is a better alternative that has plenty of more benefits and can actually save you money as well.

What is Mortgage Insurance?

Mortgage insurance is generally offered by a mortgage lender such as the bank.  This product is not issued by the bank but rather through them and is a policy offered by an insurance company.

Many people buy mortgage insurance on the premise that it sounds like a good idea.  If something happens to you then the mortgage is paid for and you are protected.

In many instances the mortgage insurance policy is relatively easy to obtain as many of these policies do not require that you take a medical exam.  Others require that you do.

Why Mortgage Insurance is NOT a Good Buy

There are several reasons why mortgage insurance is not a worthwhile investment and for the following reasons:

1. The Policy is Not Beneficial

Mortgage insurance is a form of decreasing term life insurance.  This means that as your mortgage diminishes, then the amount on your policy also diminishes.  You continue to pay the same premium throughout the lifespan of the policy until at least about 80% of the mortgage is paid down.

2. The Beneficiary

The beneficiary to a mortgage life insurance policy is the bank, not you.  You’re paying for a life insurance policy that gives you no control whatsoever.

3. Mortgage Life Insurance is Expensive

Mortgage life insurance is often provided without a medical exam being required.  Any type of life insurance policy which does not require a medical exam is always more expensive than one which requires a medical exam.

The reason why mortgage life insurance policy is more expensive is because the insurance company is taking more of a risk to insure because they have less medical information on you than they would have with a medical exam.

4. Fine Print

These policies have a lot more fine print in them and there have been plenty of horror stories of people trying to collect on a policy only to find they have been turned down because of some exclusion that was written into the policy.  The bank won’t help you either because they can’t and probably don’t really care anyway.

Term Life Insurance Better Alternative to Mortgage Life Insurance

You want your mortgage to be protected, so is there a better alternative?

The answer is yes and it can be found with a term life insurance policy.  Let’s take a look at the advantages you can get if bought a term life insurance policy instead.

Benefits of a Term Life Insurance Policy

1. Fixed Level of Benefits

With mortgage life insurance, the amount of coverage decreases.  With a term life insurance policy the death benefits you buy remains constant until the term expires.  It gives you full coverage so it provides better overall financial protection for your family.  Even though you are paying the mortgage down, the difference in potential insurance proceeds gives your family added financial security in the long run as you age.continue page 2……