Transamerica – Mortgage Protection Insurance Review (2024)

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Transamerica is a holding company for multiple US life insurance and investment companies. It now has offices throughout the United States. It has been around since 1904, although the primary focus of the company has changed significantly since then. Now, in addition to acting as a holding company for investment firms and life insurance companies, Transamerica also manages two foundations: the Transamerica Institute and the Aegon Transamerica Foundation.

Does Transamerica Offer Mortgage Protection Insurance?

Transatlantic offers a variety of insurance products, but mortgage protection insurance is not among them. With Transamerica’s life insurance policies, the benefits get paid out to beneficiaries when policyholders pass away, often creating family rifts and leaving major financial issues unaddressed. Mortgage protection insurance works differently.

When a homeowner takes out mortgage protection insurance, they are protecting the family home in the event that they pass away before paying off the mortgage. Instead of going to the beneficiaries, who may or may not even have a stake in whether or not the home’s mortgage gets paid, the benefits from mortgage protection insurance get paid out directly to the lender.

There’s no need for grieving family members to worry about whether or not they’ll be able to pay the bill to stay in their home, and no way to squabble about who gets what. The lender just gets the payments, and that’s the end of the story.

Transamerica Mortgage Protection Insurance Cost

The cost of mortgage protection insurance varies based on factors such as how old an applicant is when signing up for a mortgage protection insurance policy, the person’s gender, smoking status, and general health status. That all makes sense since mortgage protection insurance is a specialized form of life insurance.

The monthly premium will also be impacted by where the home is located and how much coverage the applicant wants. Prices can start at as low as $5 per month, but obviously, a 60-year-old homeowner with a $250,000 mortgage will wind up paying more than a 30-year-old with $25,000 in mortgage debt.

Riders for Transamerica Mortgage Life Insurance

The cost of mortgage protection insurance also varies based on whether or not policyholders add on riders. Riders allow people to customize their policies, adding on extra protections as they see fit. The two most common riders for mortgage protection insurance are also frequently purchased for traditional life insurance: disability and unemployment riders.

Both of these riders typically have waiting periods, meaning that applicants shouldn’t expect to take out a mortgage protection insurance policy and then have it pay out if they lose their jobs the next week.

Disability riders are designed to protect homeowners against sudden temporary or permanent disability. The payments kick in once the person is determined to be disabled and thus unable to return to work. The unemployment rider is a little more specific.

It applies exclusively to circumstances where homeowners lose their jobs involuntarily for a certain reason covered by the policy. Unemployment riders will usually cover six months of payments.

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