If you are a homeowner who recently closed on a loan or refinanced a mortgage, then it is likely that you have been inundated with offers for “Mortage Protection” or “Mortgage Life Insurance”. The letters appear official — as if they are sent by your lender — but in 9 out of 10 cases, they are not. Often times, your lender will partner with an insurance company and send out an offer for Mortgage Life Insurance, but these are far outnumbered by the others.
I received an email from a client last year asking me to contact his investment advisor. My client’s investment advisor had referred him to another life insurance agent, but the rates he received were not the same as the rates I quoted him. Below is an excerpt from the email (I was copied on the email).
“Tim, Greg Sanders is the agent I have been using and his rates seem a little better than Tony’s….Greg has been very responsive and professional in my dealings with him…..always good to have options …
The term “laddering” is commonly used with reference to financial products such as CDs, but it can also be used with life insurance. Simply put, laddering is a strategy employed to have more than one financial product “expire” or mature at different dates to benefit the owner. With respect to CDs, this concept protects against reinvesting a large amount of money in a poor financial climate. This concept has been applied to life insurance since the need for life insurance tends to diminish over time as debts are paid off and assets grow in value.