PERSONAL INSURANCE
JOIN US ON FACEBOOK
Underwriting
This one alone should send you shopping before purchasing mortgage insurance from your lender. In most cases, there is no underwriting done when you purchase the coverage as long as you answer a health (screening) questionnaire. So when is underwriting actually done to see if you qualify for a claim? When you die or make another claim! In other words, the only time a qualified life underwriter (the person who decides whether you qualify or not for a benefit) looks seriously at your application, is when a claim is made. Do you want that kind of scrutiny applied when you are not even there to defend it? This underwriting issue applies to the other coverages as well as the life insurance. When you purchase from a traditional insurer, they are going to underwrite your application before granting you the coverage. So, when you receive the policy, it really is an “underwritten and approved” policy. As long as you have not lied on the application or otherwise committed fraud, the contract will pay the claim in accordance with the contract.