Page 11 - Lasting Mark : Life Book 2025

WHAT WE DO
Mortgage Protection

Mortgage protection life insurance is a type of insurance specifically designed to pay off or cover your
mortgage in the event of your death. It’s meant to provide financial security for your family or dependents
by ensuring they can continue to live in the family home without the burden of mortgage payments.

Key features of mortgage protection life insurance:
1. Coverage Amount: The policy is typically designed to match the outstanding balance of your mortgage.
As you pay down your mortgage, the coverage amount decreases accordingly.
2. Purpose: The primary purpose is to ensure that if you pass away, your loved ones can use the insurance
payout to pay off the remaining mortgage balance. This can help them avoid the risk of losing the home
due to inability to make mortgage payments.
3. Premiums: Premiums can be level or decreasing, depending on the policy. Level premiums remain the
same throughout the policy term, while decreasing premiums may decrease over time as the coverage
amount decreases.
4. Coverage Options: Policies may vary in terms of coverage options, such as whether they cover only
death or include Living Benefits.

Mortgage protection life insurance is often considered by homeowners who want to ensure their mortgage
is paid off if they were to pass away unexpectedly, thereby providing peace of mind to their family or
dependents during a difficult time. It’s important to carefully review policy details and compare quotes
from different insurers to find the best coverage for your needs.

Living Benefits

1. Critical Illness Coverage
• Pays a lump sum if you are diagnosed with a covered illness (like cancer, heart attack, stroke).
2. Terminal Illness Rider
• Allows you to access a portion of the death benefit early if you’re diagnosed with a terminal illness
(usually with a life expectancy of 12–24 months).
3. Disability Income Rider
• Provides monthly income if you become disabled and can’t work.
4. Unemployment Protection
• Some policies offer temporary premium waivers or a benefit payout if you lose your job involuntarily.

Terminology & Definitions

Term Life Insurance - Provides coverage for a specific period, or “term,” such as 10, 20, or 30 years.
Whole Life Insurance - Provides coverage for your entire lifetime, as long as premiums are paid.

Universal Life Insurance - A flexible policy that combines a death benefit with a cash value savings component.
Variable Life Insurance - Offers a death benefit along with investment options for the cash value.
Indexed Universal Life Insurance - A type of universal life insurance where the cash value growth is linked to a stock
market index.
Premium - The amount the insured pays for the insurance coverage, typically on a monthly or annual basis.

Death Benefit - The amount paid out to the beneficiaries when the insured passes.
Beneficiary - The person or entity who receives the death benefit.
Cash Value - A savings component of permanent life insurance policies that grows over time.
Underwriting - The process the insurance company uses to assess the risk of the insured and determine the premium.

DOING LIFE WITH LASTING MARK | 11