Speak with an experienced advisor! In this article, we’re going to tell you how to find cheap mortgage protection insurance, what you should consider when shopping, and how to get the best-priced mortgage protection policy.
Nobody likes paying more than they have to for any purchase. Mortgage protection insurance is no different. Although you may purchase mortgage protection once, your premiums continue for many years.
If you don’t get the best-priced mortgage protection policy and overpay by $20 a month on a 20-year policy, you will spend an additional $4,800 over your 20-year term mortgage protection policy.
We are passionate about getting people the best-priced mortgage protection available. We are an independent mortgage protection agency, and we do things differently than the other mortgage protection insurance companies that sell mortgage protection.
I want the cheapest mortgage protection insurance…can I get it?
There is a direct relationship between cheap premiums and cheap insurance companies. We advise caution against going with the lowest priced insurance company.
An insurance company with a C or D A.M. Best insurance rating will often have very cheap insurance rates, but the financial soundness of these companies may be questionable. When purchasing an insurance policy to be in place for 20 to 30 years, it is important to know the insurance companies will still be in business when you need them the most.
AM Best is a company that rates insurance companies based on their financial strength. An insurance company with poor business practices and poor financial strength gets a lower rating, such as a C or D. Higher rated insurance companies will have ratings of the B or A mark; A rated insurance companies are preferred and are your best investment.
How do I get the best mortgage protection policy pricing?
It is to your advantage to work with an independent insurance agency that will shop around for you to get you the best mortgage protection rates.
Many companies involved in mortgage protection operate using a MLM business system. Although there’s nothing wrong with us, and many homeowners get protected with these companies, homeowners often do not end up with the best-priced mortgage protection policy.
Most mortgage protection insurance companies favor one or two insurance companies and will funnel most of their business to these companies. These are often great insurance companies; you just may not get the best pricing…especially if you are healthy.
Is cheapest always best?
No, it is not. You wouldn’t want the cheapest heart surgeon performing heart surgery on you. You wouldn’t want to buy the cheapest motorcycle helmet if you rode motorcycles. You wouldn’t want to buy the cheapest tools if you are a mechanic. You wouldn’t want to buy the cheapest parachute if you are a skydiver. You wouldn’t want to buy the cheapest child seat for your son or daughter. You don’t always want to buy the cheapest mortgage protection or life insurance.
Getting the best value for the lowest price is an ideal outcome. Purchasing on price alone works when insurance products are identical, and the insurance companies have the same A.M. Best rating.
Just as you should research the heart surgeon who will be performing heart surgery on you, you should do the same for your insurance policies. 50% of heart surgeons graduated at the top of their class, and 50% of heart surgeons graduated in the bottom of the class; which one would you rather have performing heart surgery on you or a loved one?
Mortgage protection insurance is the same way. 50% of insurance companies are highly rated, and 50% of the insurance companies are rated low.
When you shop on price alone, you may purchase a bottom 50% rated insurance company; this could be a disaster in the future. When you or a loved one dies, you will need your insurance company to be in business!
If I am healthy, would I qualify for a cheaper priced mortgage protection policy?
Yes, you would. However, that doesn’t mean the insurance agent helping you will sell you the best-priced mortgage protection policy.
What does being healthy have to do with my mortgage protection pricing?
Most policies sold for mortgage protection are called simplified issue, or no-medical insurance policies. They are priced at a Table 4 rating (see table below).
This means you need not take a physical or submit to blood work or urine sampling to purchase a mortgage protection policy. Most of these policies have liberal underwriting requirements.
Example – You could be a diabetic on metformin, be on two high blood pressure pills, have a thyroid issue, have osteoarthritis, and still qualify for these no-medical policies.
If you are healthy with no illness or disease, you would still qualify for this simplified issue non-medical mortgage protection policy, but it wouldn’t be the best price plan for you. We can save you money by getting you a better plan based on your excellent health.
Remember, if you are overpaying by $20 a month, it will cost you an extra $4,800 over a 20-year period for your mortgage protection policy. If you are overpaying by $20 a month, it will cost you an extra $7,200 over a 30-year period for your mortgage protection policy.
Most mortgage protection insurance companies and independent mortgage protection agents have not set up their businesses so they can easily manage the extra work involved in getting the clients the best pricing.
Simplified issue nonmedical policies are quick to get approved, and they get the agent paid quickly. These features are attractive selling points for a busy insurance agent.
Here are how rates would differ with different insurance companies and health conditions for a 40-year-old male.
| Insurance Company | Non-Medical | Table Rating | Client Age | Term | Face Amount | Monthly | Yearly |
|---|---|---|---|---|---|---|---|
| Company A | Yes | Table 4 | 40 | 20 Years | $250,000 | $84.32 | $997.00 |
| Company B | Yes | Standard Non-Tobacco | 40 | 20 Years | $250,000 | $34.79 | $404.58 |
| Company B | Yes | Preferred | 40 | 20 Years | $250,000 | $21.97 | $255.44 |
| Company B | Yes | Select Preferred | 40 | 20 Years | $250,000 | $17.97 | $208.30 |
Here are how rates would differ with different insurance companies and health conditions for a 60-year-old male.
| Insurance Company | Non-Medical | Table Rating | Client Age | Term | Face Amount | Monthly | Yearly |
|---|---|---|---|---|---|---|---|
| Company A | Yes | Table 4 | 60 | 20 Years | $250,000 | $442.46 | $5,127.00 |
| Company B | Yes | Standard Non-Tobacco | 60 | 20 Years | $250,000 | $204.01 | $2,372.72 |
| Company B | Yes | Preferred | 60 | 20 Years | $250,000 | $127.77 | $1,485.97 |
| Company B | Yes | Select Preferred | 60 | 20 Years | $250,000 | $112.80 | $1,311.94 |
The One Man Band (or the “One-Person Show”)
Most insurance agents do everything themselves; they are a “one-person show.” They call you and set an appointment, they write the application, they submit it to the insurance company, they follow up with the insurance company, handle all correspondence, handle all emails, etc.
These agents are a “one-person business” stretched thin doing many things; this is how most mortgage protection agents operate their business.
When an insurance agent has to do everything, they will often sell products that are more expensive to make their life easier; simplified issue or nonmedical policies do this for a “one person” insurance “agency.”
What do we do differently?
We run our business in a way that allows us to research the best policy for you, get you the best pricing, and get you approved for your policy.
We have agents whose only focus is helping clients and getting them the best pricing. Then, we have other team members handle all the administrative, underwriting, and other insurance company-related tasks.
This allows us to shop around and get you the best pricing, as well as give you the best customer service possible.
Our sales team works directly with you to get you the best mortgage protection pricing, and our backend workforce will ensure your application is submitted properly, and your policy gets into force as quickly as possible.
Being a virtual internet agency, we keep our overhead expenses low. We don’t purchase leads, and only work with referrals or people who have requested information. This allows us to help our clients find the best plans possible.
We never need to pressure anyone into purchasing a policy. We don’t use high-pressure sales tactics, and always have your best interests in mind.
Conclusion:
We hope this helps you understand how to find the best-priced mortgage protection insurance policy, with the best insurance company.
