State Farm began business in June of 1922. It was founded by a retired farmer named George J Mecherle. This insurance company began as a mutual automobile insurance company that was owned by its policyholders. State Farm specialized in auto insurance policies for farmers and provided better rates than its competitors.
As the company grew, it began adding other types of insurance, including homeowners, life insurance, and mortgage protection insurance policies. Eventually, the company expanded into banking and financial services with its first bank opening in May 1999.
Not only has State Farm become the largest property and casualty insurance provider, but it also remains the largest auto insurance provider in the U.S. The company is known for its interlocked red tri-oval logo, created in the 1940s and updated in 1953. Although this design was the core of its branding and notoriety, the company updated the logo to represent its core products in 2011.
Does State Farm Offer Mortgage Protection Insurance?
State Farm does offer mortgage protection insurance. Mortgage protection insurance or MPI is a type of insurance that provides protection if the policyholder dies. Unlike life insurance, MPI does not provide funds directly to a person. In addition, these funds cannot be used for anything other than mortgage payments. The mortgage protection insurance is paid directly to the mortgage lender.
When a person has a mortgage on the home they own, that person can obtain a mortgage protection policy. These homeowners pay monthly premium payments for the policy. As the principal of the home is paid down, the premium amounts may decrease. If the homeowner dies before the mortgage is paid off, the insurance policy pays the remaining mortgage amount to the lender.
State Farm Mortgage Protection Insurance Cost
State Farm agents work with an actuary to determine the price of each mortgage protection life insurance policy. There are a variety of factors that go into determining the cost of such a policy. If the person is more likely to get a payout before their mortgage is paid off, the higher the cost will be.
Mortgage protection policies tend to range between $5 and $500 per month. The factors that play a major role in the price of the policy are the homeowner’s age and the total amount of their mortgage. Other factors that are considered when determining the price of a policy are a person’s health, whether they use tobacco products, the homeowner’s gender, and the location of the home. Adding riders to the policy will also increase the cost.
Riders for State Farm Mortgage Life Insurance
Insurance riders are options individuals can have added to their insurance policies. With a mortgage life insurance policy, homeowners can add options to provide more protection in case of unexpected events. Insurance riders can be a big help for those who face life events that impact their ability to pay their mortgage.
One type of insurance rider individuals can add to the mortgage life insurance is an unemployment rider. This option provides coverage in instances where the homeowner has lost their job involuntarily. Although there may be a waiting period before coverage begins, when it is available it will cover up to six months of mortgage payments while the homeowner looks for work.
There is also a disability rider homeowners can choose to add to their policy. This coverage protects homeowners if they become disabled and are unable to pay their mortgage. Accidents and illnesses are never expected. This coverage helps protect homeowners from losing their homes by covering the mortgage during the disability.