| Q. |
Are mortgage
insurance and life insurance the same thing? |
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| A. |
Essentially
mortgage insurance and life insurance are the same thing.
Mortgage insurance is life insurance that pays you a death
benefit in the amount of your mortgage. |
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| Q. |
With mortgage
insurance, who is the death benefit paid to? |
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| A. |
We offer mortgage
insurance that pays directly to the selected beneficiary, such
as your spouse, children, or even to your family trust. That
gives the family all of the options, to either pay the house
off in a lump sum, pay a portion of the loan off, or just
continue to make payments until they decide if they want to
keep the house or not. In any event, the family is flooded
with money so that they do not have to worry where the next
house payment, car payment or grocery bill payment is coming
from. |
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| Q. |
Can both
spouses get coverage, even if only one of them is on the loan? |
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| A. |
Yes. It doesn't
matter who's name is on the mortgage loan or the even the deed
for that matter... both can apply for coverage. It also
does not matter if they are married or not. Normally the
couple will each get a policy on themselves and make each
other their beneficiary. Then if either should die, the house
can be paid off so that the surviving partner does not have
the burden of making the payment alone, on only a single
income. |
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| Q. |
What if both
die at the same time? |
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| A. |
If a couple were
to die at the same time, each of the insured's beneficiaries
would receive the death benefit payment, income tax free.
Each partner
elects a contingent beneficiary, so that if the primary
beneficiary is not living, the money passes to a "Contingent
Beneficiary". The contingent beneficiary is often the
insured's children, but can also be an immediate relative,
such as a mother, father, sibling, or even a friend for that
matter. If no one listed survives the insured, the money
passes to the deceased's estate.
If the contingent beneficiary
is the same person in both of the deceased's policies (such as
the couples child or children), they would receive a death
benefit for each policy they are named on. |
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| Q. |
Is the death
benefit taxable? |
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| A. |
The death benefit
is income tax free. It is also "probate free" meaning it can
never be contested in a court of law. Whomever is listed
as the beneficiary gets the money, even if another person
contests. It will never go to probate court. |
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| Q. |
What if I have
pre-existing medical condition(s)? |
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| A. |
Being brokers, we
do have access to plans that allow for pre-existing medical
conditions, such as diabetes, stroke and even cancer.
Diabetics that control their blood sugar with oral medications
are usually able to qualify with a rate-up in premium. Insulin
diabetics would have a steeper rate-up and would only qualify
for a minimal amount of coverage, such as $50,000 or so.
Cancer usually requires 5 years clean bill of health to
qualify for even limited amounts of coverage. Let us know your
condition and we can investigate your options for you. |
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| Q. |
How do I get a
quote or find out more about this coverage? |
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A. |
Click here for a custom life insurance quote. You can
also call us directly if you have questions or want to speak
to someone in person about any pre-existing conditions, or any
questions in general that you have. |
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Our phone
number is: (949) 394-7676.
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William S. Lorenz
- CA Lic. 0D61899 |
