Allstate – Mortgage Protection Insurance Review (2024)

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Allstate Mortgage Protection Insurance

When a person thinks of Allstate, they think of insurance. Most people don’t realize when this company was founded back in 1931, it was actually part of Sears, Roebuck and Co., a major retailer. It wasn’t until June 1995 that the company completely broke away from its parent and became independent.

Today, this company sits on the Fortune 500 list of the largest corporations in America by revenue. In 2018, the company earned $39.8 billion. However, people best know this company through its slogan, “Are you in good hands?” In addition, the logo features a home sitting in oversized hands, and many people instantly know which company the logo represents.

Does Allstate Offer Mortgage Protection Insurance?

Home and auto insurance are typically the first two things that come to mind when a person thinks of Allstate. However, this company offers many other products that might be of benefit to the insured. Mortgage protection insurance as a term life policy is coverage any person purchasing a home should invest in.

Mortgage insurance is a life insurance policy, although many people do not realize this. What distinguishes it from most life insurance policies is the mortgage lender serves as the beneficiary. When the person named in the policy passes away, the money from a mortgage protection policy goes directly to the mortgage holder.

In contrast, when a person passes away and they have a term life insurance policy, the named beneficiary receives the funds owed to them through the policy. They may then use the funds for any purpose they desire. While this might involve paying off the mortgage of the deceased individual, the beneficiary is not required to do so.

Allstate Mortgage Protection Insurance Cost

A person may hesitate to purchase mortgage protection insurance because they worry about the high cost of the policy. However, most people find it is more affordable than they imagined. In fact, a person may pay as little as $5 a month for this protection, although some policies come with a premium of $500 a month or higher.

When calculating a premium, the insurance company looks at many factors. They consider the amount owed on the home, the age of the insured, and any health conditions this individual has. Other factors also play a role in how much a person will pay for this coverage, but those are typically the main three elements considered in the premium calculation.

Riders for Allstate Mortgage Life Insurance

The insured may also choose to purchase riders when getting a mortgage protection insurance policy. For instance, they may choose a disability rider, one which will make their mortgage payments if they become disabled. There is an additional cost for this and any rider a person adds to the policy.

Another option is an unemployment rider. If the person named in the policy becomes unemployed and meets the qualifications, the insurance company will make their mortgage payments for a predetermined period. There is typically a waiting period before this coverage becomes available, so the insured party must ensure they understand the terms and conditions before purchasing this rider.

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