Fidelity Life – Mortgage Protection Insurance Review (2024)

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Founded over 120 years ago, Fidelity Life remains committed to creating insurance policies designed to fit a person’s life. The company continues to find new ways to improve on the insurance experience.

It was one of the first companies to use automated underwriting engines and the first in the industry to allow e-signatures. Today, it continues to apply new technologies and processes with the goal being to make getting an insurance policy faster, easier, and more affordable.

The company believes every family should have the coverage it needs. Every employee working for Fidelity remains dedicated to this goal.

Does Fidelity Life Offer Mortgage Protection Insurance?

While Fidelity doesn’t offer a specific policy known as mortgage protection insurance, a person can purchase a term life insurance policy and use it in this manner. The two products are similar, but there is one key difference.

When a person purchases mortgage protection insurance, the policy names the mortgage holder as the beneficiary. The money is automatically used to pay the principal and interest of the mortgage the policyholder had. However, it does not cover insurance or taxes.

If an individual purchases a term life policy, they determine who the beneficiary will be. This individual can use the money for any purpose. They are not required to pay the mortgage with the funds if they don’t want to. If they choose to do so, they can pay the principal, interest, insurance, and taxes.

Fidelity Life Mortgage Protection Insurance Cost

Mortgage protection insurance doesn’t cost as much as many people imagine. In fact, a person might find they can get this protection for as little as $5 a month. Some people, however, pay hundreds of dollars each month, especially when they have a jumbo mortgage. Many factors determine how much a person will pay.

Those individuals with high-dollar homes are often the ones who need this protection. Their loved ones may not be able to continue to live in the home without this protection in place. When one considers this, the cost is negligible.

Those with less expensive homes also benefit from this protection. They don’t need to worry about paying the mortgage as they grieve. The cost of the protection is nothing when compared to the peace of mind the policyholder will have, knowing they have done everything possible to ease their loss for loved ones.

Riders for Fidelity Mortgage Life Insurance

A person might find they wish to purchase additional protection. The offerings vary by the insurance provider, but many people want to purchase an unemployment rider and a disability rider at a minimum.

The unemployment rider covers the mortgage payments if the policyholder loses their job under qualifying circumstances. However, the policy will outline the number of payments it will cover, and policyholders often find there is a waiting period before the payments begin.

The disability rider makes the policyholder’s mortgage payments if they become disabled. Again, there may be limitations or exclusions which the policyholder should know about before purchasing this add-on.

Fidelity Life does not offer these riders, according to the website. A person would need to speak to the company to determine whether they can add protection of this type to the term life policy.