The third-largest life insurance provider in America today, New York Life Insurance Company offers a range of products designed to meet the needs of its clients. This company made the 2021 Fortune 500 list of the country’s largest corporations in terms of revenue. This provides clients with confidence, as they know they are working with a company that is financially sound.
In addition, the company regularly receives the best possible ratings from independent rating companies, which is another reason consumers turn to it when they need insurance for a variety of purposes. One product a person may wish to buy is mortgage protection insurance. Does this company offer that type of coverage?
Does New York Life Offer Mortgage Protection Insurance?
People often ask if New York Life offers mortgage protection insurance. Although the company doesn’t have a product specifically designated as mortgage protection insurance, it offers term life insurance policies. A person may purchase one of these policies and use it as mortgage protection insurance.
The key difference between a designated mortgage protection insurance policy and a term life insurance policy is the named beneficiary. With mortgage protection insurance, the mortgage company serves as the named beneficiary. When a person chooses term life insurance, they are the named beneficiary and do not have to use the funds for the mortgage.
However, the policyholder may name the mortgage company as the beneficiary. This is something they would discuss with the insurance provider. A person may wish to do so to ensure loved ones use the funds as they intended when taking out the policy.
New York Life Mortgage Protection Insurance Cost
Before taking out any insurance policy, a person wants to know the premium. With mortgage protection insurance, there is no set cost. Companies treat it much as they do other insurance policies and calculate the premium using multiple factors.
For example, the age of the policyholder plays a role in how much they will pay for this protection. In addition, if they have any health issues, this increases the premium, as the insurance company is taking on more risk.
A person should compare policies from multiple companies before choosing. This ensures they get a policy that provides the desired level of coverage at a price they can afford.
Riders for New York Life Mortgage Life Insurance
A person might choose to purchase add-ons when investing in mortgage life insurance. Two riders every mortgage holder should consider are disability insurance and unemployment insurance.
With the disability rider, if the mortgage holder becomes disabled while holding this mortgage, the insurance company steps in and pays the mortgage. They don’t need to worry about doing so, which often provides them with much-needed peace of mind.
Those who have the unemployment rider find the insurer will pay their mortgage payments if they lose their job under a qualifying situation. There is typically a waiting period before the insurance company does so, and policies of this type come with a limit.
Most times, the insurer only makes the mortgage payment for several months. They then become the responsibility of the mortgage holder once again.