Describe mortgage protection life insurance.(1 point) Responses an insurance that pays out when there is an accidental death or loss of functionality an insurance that pays out when there is an accidental death or loss of functionality a contract between the lender and borrower which cancels all or part of a loan due to a significant event such as death, loss of job, disability. a contract between the lender and borrower which cancels all or part of a loan due to a significant event such as death, loss of job, disability. a contract that helps pay for repair or replacement due to normal use once the object is outside the original coverage period a contract that helps pay for repair or replacement due to normal use once the object is outside the original coverage period a type of insurance that pays off the balance of a mortgage in the event of the death of the mortgage holder
A mortgage protection life insurance is a type of insurance that pays off the balance of a mortgage in the event of the death of the mortgage holder.
Mortgage protection life insurance is a type of insurance that pays off the balance of a mortgage in the event of the death of the mortgage holder. It provides financial security to the borrower's family or dependents by ensuring that they will not be burdened with the mortgage payments in case of the borrower's death.
To obtain mortgage protection life insurance, you can follow these steps:
1. Assess your needs: Determine the amount of coverage you would need to pay off your mortgage in full. Consider factors such as the outstanding balance, interest rate, and term of your mortgage.
2. Research insurance providers: Look for reputable insurance companies that offer mortgage protection life insurance. Compare their policies, coverage options, premiums, and any additional benefits or riders they may offer.
3. Get quotes: Request quotes from multiple insurance providers to compare the cost of coverage. Provide accurate information about your age, health, mortgage amount, and any other relevant details.
4. Apply for coverage: Once you have chosen an insurance provider, submit your application for mortgage protection life insurance. You may need to provide personal and medical information, undergo a medical exam, and answer health-related questions.
5. Underwriting process: The insurance company will review your application and medical records to assess your insurability and determine the premium amount. They may request additional information or clarification during this process.
6. Policy issuance: If your application is approved, the insurance company will issue your mortgage protection life insurance policy. Read it thoroughly and understand the terms, conditions, and exclusions.
7. Make premium payments: Pay the premiums as agreed upon in the policy. Missing payments can result in a policy lapse and loss of coverage.
8. Make a claim: In the event of the insured's death, the beneficiary must notify the insurance company and provide the necessary documents, such as a death certificate. The insurance company will then process the claim and, if approved, pay off the remaining mortgage balance directly to the lender.
It is important to note that mortgage protection life insurance is specifically designed to cover the outstanding mortgage balance and may not provide additional financial benefits. It is advisable to review your overall life insurance needs and consider other types of coverage to fully protect your family's financial well-being.