How To Compare Mortgage Insurance Online

Learning how to compare mortgage insurance provides you with a way to shop for the best coverage with the lowest rates for you. There are some steps that you need to perform to conduct a mortgage insurance quote search online but following these steps will help you understand better the your mortgage insurance coverage.

Mortgage insurance, which is also referred to as credit life, provides a benefit to the lender equal to the amount of the outstanding mortgage should the homeowner die before the end of the mortgage term. Purchasing mortgage insurance requires a few simple steps to accomplish your search and receive the information you need to complete your comparison.

Step 1: Perform a Keyword Search of Insurance Carriers

Type the words “mortgage insurance” or “compare mortgage insurance” into any search engine in order to begin your search of insurance companies. You should seek those companies that offer good rates for their level and decreasing term insurance products, which are typically the type of insurance used in mortgage insurance.

The rates you receive should be based on your personal factors such as your age, gender, height/weight, smoking versus non-smoking status, etc. If you have not provided any of this information prior to receiving the quote, be suspect of the information you are reviewing. Most companies show insurance rates that are based on a preferred or above average rating standard when in fact your rate may be higher than the quote.

Step 2: Compare Policy Options

The premium quotes that you receive and are using as a basis between policies should be compared on an apples to apples basis. This means that a policy with a higher premium cost may have some additional benefits not reflected in the pricing of the second company.

At a minimum, the policy should provide a basic death benefit amount based on your rating classification and any additional benefit should be the same among the different policies you choose to compare between.

Step 3: Determine the Best Coverage for Your Needs

Once you have conducted your comparison and reviewed the costs on an equal basis, choose the policy that best meets your needs for mortgage insurance protection. Pricing is an important consideration when comparing insurance but it is not the only consideration. The insurance company’s ratings, their financial strength and claims paying ability are as important factors to consider. It does not make sense to purchase the east expensive policy from a company that will not be around in a year’s time.

The internet makes comparing insurance policies online easy to accomplish. Following these steps and making sure that your decision to buy is based on more than just the premium will help you understand your mortgage insurance purchase.

blog comments powered by Disqus