GEICO, or the Government Employees Insurance Company, is a privately held entity that’s headquartered in Maryland. It’s America’s second biggest auto insurer, second only to State Farm. Owned by Berkshire Hathaway, GEICO covers over 15 million people and almost 25 million vehicles in the United States. The company offers other insurance products, such as mortgage insurance, which we’ll discuss below.
Does GEICO Offer Mortgage Protection Insurance?
GEICO’s mortgage protection policies pay the interest and principal on a mortgage when the policyholder cannot do so. Once the policy is purchased, the owner pays a premium each month; if they suffer a covered illness, injury, or untimely death, the benefit is paid directly to the mortgage lender. The value of these policies declines with time as payments are made.
GEICO Mortgage Protection Insurance Cost
When GEICO’s specialists calculate your mortgage protection policy, they’ll consider factors such as:
The face value. The biggest factor in the cost of a policy is its face value. The more coverage you need, the more you’ll pay.
Your age. The cost of a mortgage protection plan depends on your age at the time of purchase; the older you are, the more the policy will cost.
Your health. If you’re in failing health, have a hereditary disease, or are in a risky line of work, the policy will increase in cost.
Gender. Men typically pay more for mortgage protection insurance than women. It may seem discriminatory, but it’s backed up by statistics.
Location. The area in which your home is located largely determines the cost of mortgage protection insurance. For instance, it will cost more to insure a home in a flood zone than one that’s further away from the area.
Lifestyle habits. Those who drink alcohol or smoke tobacco may pay more for coverage.
If you decide to buy additional coverage, the cost of mortgage protection insurance will increase correspondingly. In the section below, we’ll discuss the availability of these popular GEICO policy additions.
Riders for GEICO Mortgage Life Insurance
Insurance riders are optional add-ons for mortgage life insurance policies. They provide various benefits depending on the type of payout, rider, and policy. The most common mortgage protection policy riders cover situations such as:
Unemployment. A buyer can add unemployment coverage if it’s not already on the policy. This rider covers buyers who lose their jobs involuntarily if the reason for the loss is covered under the policy’s guidelines. This rider typically comes with a waiting period, but once it is in effect, it may cover a half-year’s mortgage payments while the buyer finds a job.
Disability. When policyholders become temporarily or permanently disabled and cannot pay their mortgages, the disability rider will help. This rider is a great option for those with hereditary illnesses and people in high-risk lines of work.
These are just a few of the options available with a GEICO mortgage protection insurance policy. To learn more or to sign up, contact a GEICO insurance agent or call the company directly.