Founded in Fremont, Michigan, Gerber Life Insurance Company is one most people know. They associate this name with its baby food line and the insurance offerings for young children.
Besides its line of juvenile life insurance products, the company offers other items that might interest families. One type of life insurance policy a family might express an interest in is mortgage protection insurance.
Does Gerber Offer Mortgage Protection Insurance?
While Gerber does not offer a policy specifically designed as mortgage protection insurance, a person might purchase a life insurance policy that serves as this type of coverage. Mortgage protection insurance is actually life insurance.
When you purchase term life insurance, you determine how long you wish to maintain the policy. If you pass away during this period, the policy pays loved ones the amount listed in the policy.
With mortgage protection insurance, you choose the term of the policy, which is typically the number of years left on the mortgage. In the event you die during this period, the insurance company pays the mortgage, removing this burden from loved ones left behind.
The key difference between the two products is the family receives the proceeds of a life insurance policy, while the mortgage lender is the named beneficiary of mortgage protection insurance.
Therefore, a person may purchase a term life insurance policy through Gerber and use it as mortgage protection insurance, although the family receives the proceeds and may use it for other expenses if they choose.
Gerber Mortgage Protection Insurance Cost
Families want to know how much they will pay for mortgage protection insurance. There is no set answer to this question, as it depends on many factors.
The age of the policyholder plays a role in the premium they will pay, as does the amount they owe on their mortgage. A person may expect anywhere from $5 a month to $500 a month for this coverage.
However, any health issues they have also affect the premium. A person with health issues serves as more of a risk to the insurer, so the premiums will be higher for this individual. Every person should compare different policies to find the one that best meets their needs and fits their budget.
Riders for Gerber Mortgage Life Insurance
A person might find they have the option of purchasing riders or add-ons to their mortgage protection insurance policy. These add-ons ensure they don’t need to worry about their mortgage payments if they become disabled or lose their job through no fault of their own.
Disability payments typically pay out once the person has a formal determination of a disability. Unemployment benefits typically come with a waiting period. In addition, the insurer only provides these payments for a designated period, often six months.
This allows the policyholder to get back on their feet and find another job without worrying about how they will pay their mortgage when doing so. A person cannot put a price on the peace of mind they get when the insurance company pays their mortgage payments while they are struggling.