Mortgage Insurance - Health Risk Services Inc

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					Mortgage Insurance

Key Features & Options

There are many advantages and benefits of insuring your mortgage. However, to maximize the
impact or usefulness of these features and options, it is important to understand the difference
between “Lenders Group Mortgage Insurance” and an “Individual Mortgage Insurance Policy”.


Lender Group Mortgage Insurance

This form of mortgage insurance policy is offered by your lending company (usually your bank) at the
time your mortgage loan has been approved. Most often, acceptance is automatic on the date you
apply and medical examinations or requirements along with health history may not be required for
enrollment. In many of these cases, medical underwriting may be done at the time of claim.

The contract of insurance is between the insurance company provider and the Lender, therefore, the
Lender owns the policy and is the beneficiary of the policy. The ONLY purpose of this form of
insurance is to ensure that the Lender will have either the outstanding mortgage balance paid in the
event of death, or in the event of Disability or Critical Illness, the monthly mortgage payments will
continue to be made to the lender.

Since this form of Mortgage Insurance is referred to as a “grouped plan”, you will generally pay the
same rate as everyone else insured on this plan for policy premiums regardless of age or health
history.

It is important to recognize that when you purchase Lender Mortgage Insurance, you are merely
“RENTING” your insurance from the actual owner - the Lender!


Personal/Individual Mortgage Insurance

This form of mortgage insurance policy is offered through an insuring company and can be best
negotiated with an insurance broker such as Health Risk Services Inc. The policy is fully underwritten
at the time you apply for the coverage avoiding all of the “snares” of underwriting at the time of claim.
You know what your coverage is going to be and whether you will qualify for the benefit at the time of
your claim right up front!

One of the most important reasons you would purchase this form of Mortgage Insurance is that you
“OWN” your insurance policy and you, your family and designated loved ones are the beneficiaries
of the policy!

Since you “OWN” your policy, the insurance payout, whether for death, disability or critical illness,
can be used by the beneficiary for whatever purpose they deem necessary at the time of payout. You
also have the ability to “PORT” your policy to each new mortgage you may attain, rather than having
to go through the process of acquiring new coverage.
Health Risk Services Inc. offers a variety of Personal/Individual Mortgage Insurance Policies that will
cover the financial risks of mortgage default due to Death, Disability or Critical Illness. We will educate
you as to the best coverage available along with the many options that you have to choose from.
Below, please see several comparisons between Lenders Group Mortgage Insurance and Individual
Mortgage Insurance along with the many Benefits/Advantages of choosing HRS to implement your
policy.


 Lenders Group                          Individual Mortgage                    Benefit/Advantage of
 Mortgage Insurance                     Insurance Policy                       HRS Inc. Policy

 The bank or lender owns the            You own the insurance policy           You are in complete and
 insurance policy                                                              full control of the policy

 Features and provisions of the         You can select the plan you want       You maximize your
 policy are the same for you as         with features and provisions that      coverage based on your
 they are for everyone else             are applicable to you                  specific requirements

 The face amount of the policy          You can purchase a policy with         Based on what is covered
 is exactly what the face amount        a coverage amount that meets           a benefit payout can be
 of the mortgage is                     your individual needs                  used to cover a mortgage
                                                                               and/or other expenses

Insurance coverage decreases            You may purchase insurance             Both your long and short
as the term of the policy               that is permanent, term, level         term needs for coverage
continues                               or decreasing                          are met

A policy can be cancelled by           A policy can not be cancelled          You are able to avoid any
your lender at any time                unless you cancel it                   unexpected situations or
                                                                              drawback from coverage
                                                                              that is discontinued

Lenders policies can be                You may continue your policy           You can control the effect
terminated for any of the              as long as you want and move           and term of your policy and
following conditions:                  it to another mortgage.                continue coverage if you
                                                                              become uninsurable at any
a. the mortgage is repaid                                                     time
b. the mortgage is assumed
c. the property is sold
d. termination of policy

Policy is not convertible              Individual policies are                Policy can be converted
                                       convertible                            regardless of health
                                                                              normally until age 65

Unable to make beneficiary             Owner of policy can make               Beneficiaries can choose
designations or settlement             beneficiary designations and           how policy proceeds will be
options                                select settlement options.             disbursed avoiding hasty
                                       Proceeds are protected from            decisions including repay-
                                       creditors                              ment of mortgage
Lenders Group                    Individual Mortgage                Benefit/Advantage of
Mortgage Insurance               Insurance Policy                   HRS Inc. Policy


Benefit pays out only once for   Benefit pays out when eligible     Policy covers husband and
coverage of insured person and   and coverage is continued for      wife for same amount and
coverage is terminated upon      additional or surviving family     coverage may be continued
payout.                          members and/or spouses             for surviving members

Cash values do not accumulate    You can choose to have a           Your policy can be
over the life of the policy      policy with or without cash        designed to provide a
                                 values                             return of your premiums
                                                                    over time


No other benefits or features    You may add benefits and           You may add waivers for
other than what is included in   features to your existing policy   payment if your were to
the policy may be added by you   if they are available to you       become disabled, increase
                                                                    protection or add a
                                                                    beneficiary
Your lending officer is not a    Your policy will be designed and   All of the best options and
licensed insurance broker        negotiated by a licensed and       information will be made
                                 industry certified broker          available to you

				
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