How Mortgage Life Insurance Works...
A bank plan is meant to provide peace of mind so that if you die there will be sufficient proceeds to pay off your outstanding mortgage debt. 20/20 works the same way, but instead of paying the money directly to your bank if you die, it provides your beneficiary with a tax-free lump sum benefit that can be used to discharge your mortgage obligation or for whatever other purposes the beneficiary considers most appropriate.
20/20 is portable and will continue to cover you if you change banks or your mortgage changes.
The life insurance benefits are equal to your outstanding mortgage balance at the time of your application (to a maximum of $600,000). To keep your premiums affordable, benefits are reduced in proportion to your outstanding mortgage balance. We tell you up front exactly what your coverage will be for each year so that you know you will always have enough to pay off your mortgage in the event of a claim. And if you end up paying your mortgage down faster than the schedule shown in your policy, your coverage will not be reduced.
Because we don't know the exact amount of your outstanding mortgage we use a conservative 6% amortization schedule, which will always result in a higher amount of coverage than you would have with your bank (unless the interest rate on your mortgage exceeds 6%).
20/20 Mortgage Life Insurance is available with single or joint life coverage.
| Features |
|
|---|---|
| Issue Ages |
From 18 to 59 at last birthday. Policy terminates at age 70. |
| Term of Coverage | Any length from 10 to 25 years. The term can be less than or equal to the remaining mortgage amortization. |
| Sum Insured | $50,000 – $600,000 |
| Right to Modify Term | None, the insurer may not modify the term. |
| Additional Coverage |
The following benefits can be purchased with a 20/20 Mortgage Life Insurance policy and must be issued at the same time:
|
| Joint First-to-Die Policy |
|
| Pre-existing Conditions Exclusion | None |
| Portability | Yes. Coverage continues if you change banks or your mortgage terms change. |
Contact Us
Questions? Comments? Call us today at 1-844-974-2020 or fill out the form below: