Life Insurance to Cover Your Mortgage
More and more companies are offering a type of life insurance which is designed to help families pay their mortgage in case the homeowner passes away. USAA is an example of a company offering this type of product. Qualified USAA members buying a new home or homeowners insurance policy have an option to buy a simplified issue term life insurance policy. This gives consumers the peace of mind that their mortgage will not burden any family members if they pass away.
This life insurance offered through USAA is called the Simple Life for Home plan and is intended to offer a reliable safety net for members who do not happen to carry a traditional life insurance policy. The plan does not require a medical exam and offers an instant response after a medical questionnaire online which is simple and user-friendly. USAA Direct Life Insurance Company underwrites this life insurance policy according to the article "Simplified Issue Life Insurance Offers Protection to USAA Members" from Business Wire.
One unique aspect of Simple Life for Home is that it is portable, meaning members can take the life insurance with them if they change their residence. According to a survey completed for USAA in 2010, 70% of active duty military members have moved in the last 24 months which is significantly less than the general public. The survey showed only 35% of the general public moved in the last 2 years. This makes this type of policy invaluable to those moving often.
This policy differs from mortgage insurance in the sense that the face value of Simple Life remains constant throughout the life of the policy. Simple Life also gives an option to buy additional coverage up to $50,000. This can be the extra cushion to help loved ones get through tough times since a home is generally a person's largest purchase in life and comes with many additional expenses that often are not thought about ahead of time. It's a unique program that could end up being very successful.