Your client just bought that beautiful new home and wants to protect their new mortgage of $350,000 with life insurance. They ask you about mortgage insurance. You explain that there is an alternative to mortgage insurance called level premium term. You ask your client how long his mortgage is (30 years in this case) and offer a 30 year level premium term. You explain how he can do a collateral assignment of the amount outstanding to the bank and that the balance of the benefit will go to his named beneficiary. Your client states he already has some life insurance for his beneficiary and really would like something that decreases over time.
You have a solution – Mortgage Protection for Less
Term life insurance on a UL chassis. Let’s take a look:
In this case we will be looking at the husband who is 45 and a preferred rate classification. The best 30 year level term would cost $74.69 a month. Or he could purchase a 20 year level term on a UL chassis with a benefit of $450,000. His monthly premium would be $60.95 monthly for 20 years. After that, the premium would remain the same with a reduction in the benefit amount starting after the 20th year which would closely match the amortization of his mortgage. The overall savings in life insurance benefit cost over the 30 years is $4,946.00 and it gives your client more coverage in the first 20 years, when they may need it most.
Want to help your clients save money covering their new home? Give us a call at 800.747.4445 or email firstname.lastname@example.org.
We are here to help you.