If you are a homeowner, or thinking of becoming one, it is likely that you have been strongly encouraged to purchase mortgage life insurance from your lending institution. It is important to know that you are not obligated to take this insurance from the bank where you obtained your mortgage, and that there are other options available.
Mortgage life insurance is purchased in order to guarantee that any outstanding mortgage debt you may have at the time of your death will be paid off in full. This certainly sounds good — at least on paper.
But did you know that the mortgage life insurance offered by lending institutions is essentially a Term Life insurance policy that names the institution as the beneficiary? In addition, lending institution representatives may have aggressive insurance sales quotas they need to meet, they may be unlicensed, and may not be adequately trained to explain all the details and legalities of their institutions' insurance plans.
What if you could purchase mortgage life insurance — essentially, Term Life insurance — directly from the OMA? You can.
The OMA is your Association — we understand your professional and personal needs. OMA Insurance coverage offers product flexibility and competitive rates.
Benefits of purchasing mortgage life insurance through the OMA
Alban Moran, Senior Consultant, OMA Insurance Services, explains another financial benefit: "Only OMA members are eligible for the OMA Group Term Life program. As a non-profit program, any surplus may be refunded to members at the end of each year. Since the OMA Life programs were initiated in 1956, our insureds have received a premium refund each December, while also enjoying the OMA's affordable and comprehensive coverage."
When purchasing any mortgage life insurance, be sure to fully explore your options before deciding how you wish to protect your family.