Mortgage Insurance

Buying a home may be one of the most important purchases you will ever make. It can provide security for you and your family, and may also prove to be a great investment. The "Purchase Process" is sometimes very confusing…. all the paperwork, inspections, and financing requirements. For settlement time you may be informed that you need hazard insurance, mortgage equity insurance, and title insurance. Sometimes you are also given the option to purchase mortgage life or disability insurance. With all the different types of insurance being discussed, many times you don’t know what to buy. Besides, after the "sticker shock" of the money required for settlement, you need some additional time to consider any optional items. After "the smoke clears" you can always review what you actually bought and decide if you’re properly covered.

But, the months become years and the review never happens. Or maybe you did purchase mortgage and disability insurance at settlement, but years later you took out a home equity loan to cover other needs. Another possibility is that you refinanced your home to lock–in a lower interest rate, but also extended the number of years to repay the loan.

If any one of these scenarios describe you, now may be a great time to make sure that you are properly covered.

AAA East Penn Insurance Agency, Inc. is an independent agency representing many excellent companies. We have mortgage insurance policies to fit almost anyone’s needs. One program we offer is called HomeCertain, made available by F&G Life Company. This mortgage life policy offers you both protection and flexibility when protecting your home and your family’s future. HomeCertain can pay off your mortgage if you die, refund your premium payments if you live, and make your mortgage payments if you become disabled!

It works like this: The basic protection of HomeCertain is to help protect your family by providing enough money to pay off your home mortgage balance in the event you die. The benefits are there when your family needs them. The optional Disability Rider can provide a monthly benefit amount in the event you become disabled. This amount will be "roughly" equal to your mortgage payment and can be paid to you each month for up to two years (24 months). You have to be disabled for at least 90 days to begin receiving the disability benefit. Your maximum monthly benefit is the lesser of $1,500 per month, your monthly mortgage payment (including property tax and insurance payment) or 1.5 percent of the life insurance face amount. Other optional riders are waivers of premium that will waive your monthly premium for as long as you are disabled, after a 180-day elimination period, and the return of premium option. Return of premium will refund all of your paid premiums at the end of your policy term. Imagine- getting all of your money back if you don’t use the benefits!

HomeCertain is just one of the fine programs we have available to provide protection for our members. To make sure you are properly covered, just call, fax, email, or stop by one of our conveniently located offices.

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Published in the March 2001 issue of the AAA Traveler.