Many individuals assume they can no longer purchase mortgage insurance protection once they reach the age of 65. This coverage remains available if a person knows where to look. What is the difference between coverage for those under 65 and a policy for seniors over 65?
Mortgage Protection Insurance for Seniors
Mortgage protection insurance plans are the same regardless of a person’s age. The difference lies in the number of companies offering this policy. Fewer companies choose to work with seniors aged 65 and older.
In fact, most companies quit offering mortgage protection insurance once a person is between 50 and 60 years of age. However, some companies offer it for older individuals, including those 80 years of age. Which companies do so today?
Best MPI Policies for Seniors
Seniors find there is no one-size-fits-all policy for mortgage protection once they reach an advanced age. Many factors play a role in who will provide this type of policy and how much they will pay. However, three companies consistently offer these policies to seniors and do so at affordable rates: Foresters Financial, Mutual of Omaha, and American Amicable.
Mortgage Life Insurance Term Lengths for Seniors
What differs for individuals over 65 when buying mortgage protection insurance is the term lengths offered. Most companies will only allow a senior to purchase a policy with a 10, 15, or 20-year term.
The term length permitted typically decreases as a person gets older. For example, a 65-year-old individual will choose from these three options. However, a person who is 70 may choose either a 10 or 15-year term. Individuals 75 or 80 years old won’t get to choose a term length longer than ten years.
Monthly Premiums for Seniors Over 65
Monthly premiums remain level throughout the term length of a mortgage protection insurance policy. When this term ends, most companies allow the policyholder to renew the plan. However, the monthly premium increases when they do so, and most carriers won’t allow anyone over the age of 95 to hold a plan.
For this reason, experts recommend purchasing the longest term length permitted. This limits the number of times the person must renew and pay significant monthly premium increases.
Seniors should consider another option if they wish to see their mortgage paid upon their demise. A whole life insurance policy pays the mortgage payments for a few months or years when they pass and will also help cover the individual’s final expenses.
The benefit of choosing a life insurance policy over mortgage protection insurance is a person may purchase this policy until the age of 90. In addition, the policy never expires and the family is guaranteed a payout. The only requirement is the policyholder must pay the premiums on time.
A person can get mortgage protection insurance even if they are over the age of 65. Work with an insurance agent who partners with top insurance companies to find the right policy and premium for each client based on their specific circumstances. Learn more today about insurance options for seniors, as there are many products designed with this age group in mind.