# Mortgage Protection — FAQ Answers for agents and customers. Scope is **mortgage-related information** for mortgage protection — not mortgage origination, refinance processing, or medical underwriting. This fact-find does **not** collect BMI, height, weight, tobacco, or disease history. --- ## Product basics ### What is mortgage protection? Mortgage protection is **life insurance** sized around the home loan. If the insured person dies, the policy can pay a death benefit that the family (or named beneficiary) can use to help pay off or keep up with the remaining mortgage. It does **not** replace the mortgage contract with the lender. The loan still belongs to the borrower until it is paid. ### Is this a mortgage, a refinance, or insurance from my lender? No. This is life insurance. We are not offering a new loan, a lower rate, cash-out, or a lender-required insurance product. The customer can keep their current mortgage as it is. ### Is this health insurance or mortgage insurance (PMI)? No. | Product | What it does | | --- | --- | | Mortgage protection life | Pays a death benefit if the insured dies | | Health / medical insurance | Pays doctor and hospital bills | | PMI / lender mortgage insurance | Protects the **lender** if the borrower defaults (usually when equity is low) | ### Who receives the money? The **beneficiary** named on the policy — often a spouse or co-borrower. They can use the benefit toward the mortgage or other needs. The lender is not automatically paid unless the customer structures it that way and the policy allows it. ### Does the benefit go down as the loan is paid down? It depends on the product: - **Level death benefit:** the face amount stays the same for the term, even if the loan balance drops. - **Decreasing term (if offered):** the benefit may reduce over time, closer to a declining loan balance. Confirm the actual product before describing a decreasing benefit. ### How much coverage should I get? A common starting point is the **current remaining loan balance**. Also consider: - Whether a spouse / co-borrower should be covered - Existing life insurance already in force - Income so the face amount stays reasonable next to the loan - Remaining loan term (15 vs 30 years) - Monthly payment the survivor would have to carry We do not size coverage far above the loan and income without a reason. ### Can both borrowers be covered? Yes, when the product allows it. Typical options: - Cover the primary borrower only - Cover the spouse / co-borrower only - Cover both (two policies or a joint / rider design, depending on carrier) We capture `coverage_on_whom` as primary, spouse, or both. --- ## Loan and property details we collect ### Why do you need my remaining loan balance? The remaining balance is how we size the coverage. The usual goal is to protect about what is still owed, not an unrelated number. ### Why do you need the remaining term? Coverage length should usually track the years left on the loan. A 30-year loan with 8 years left does not automatically need a new 30-year term. ### Why do you ask the monthly payment? It shows what a surviving co-borrower or family member would still have to pay each month if the insured died and the loan stayed in place. ### Why do you ask purchase vs refinance vs existing loan? A loan at closing is usually at its highest balance. An existing loan may already be paid down. That changes how much protection is needed. ### Why do you ask the closing date? For a purchase or refinance in process, the final balance may change at closing. We note the date so we can confirm the amount before issue. ### Why do you ask property type and property state? Product rules and licensing follow where the customer lives and, when different, where the property sits. Primary home, second home, and investment property can also change the need story. ### Why do you ask who is on the loan vs the deed? The person on the **note** owes the payment. The person on the **deed** owns the home. We capture both so we cover the people whose death would put the mortgage at risk. ### Why do you ask if I pay PMI? So we can explain the difference. PMI protects the lender. Mortgage protection is meant to help the family. Paying PMI does not mean this coverage is included. ### Why do you ask about income? Income is for **affordability and face-amount reasonability** next to the loan. A very large face compared with income and the mortgage can be a red flag. ### Why do you ask about my spouse or co-borrower? If there is a **co-borrower**, or if coverage is for both people, we need their name, age, sex, and whether they are on the note or deed. The surviving borrower is often the person who would have to carry the house payment alone. ### What if I already have life insurance? Tell us the amount and when it expires. We may keep it and add mortgage protection, or discuss replacement. Replacement is not automatically better. Compare the existing amount and term to the remaining mortgage. --- ## Cost, term, and policy mechanics ### How is the premium set? By age, sex, state, face amount (usually the loan balance), term, and payment mode. Quote only from the **carrier tool**, not from the interview worksheet. ### Can premiums increase? Many mortgage protection term products have a **level premium for the term**. Read the illustration / outline of coverage before stating “the price never changes.” ### What term should match the loan? Often the remaining loan term — for example 15 or 30 years — if the product offers that duration. If the customer is close to payoff, a shorter term or a smaller face may fit better. ### What happens if I sell the house or pay off the loan early? The life policy does **not** automatically cancel with the mortgage. The customer can usually: - Keep the policy for other family protection - Reduce the face amount if the carrier allows - Surrender or stop paying (coverage then ends per policy terms) Paying off the loan does not require them to drop the insurance. ### What happens if I miss a payment on the insurance? The policy can lapse after the grace period. A lapsed policy does not pay a death benefit. This is separate from the mortgage payment to the lender. ### Is this required to keep my mortgage? No. Mortgage protection life is voluntary. Do not imply the lender requires this policy. --- ## Eligibility and process ### Who can apply? Generally a resident in a licensed state, within the product’s age band, with a legitimate mortgage-related need. Citizenship and residency rules vary by carrier. ### I am only on the mortgage, not the deed (or the reverse). Can I still apply? Insurable interest is usually based on the person whose death would create a financial loss on the loan. Capture who is on the note, who is on the deed, who lives in the home, and who should be insured. Do not invent eligibility. ### Do you need my Social Security number now? Not in the first interview. SSN/ITIN, ID, and bank draft details are typically collected at **application** if the customer agrees to apply. ### What information do you need on this call? Only mortgage-related facts: - Name, phone, email, date of birth, sex, state - Remaining loan balance and remaining term - Monthly payment, closing date, loan purpose - Property type and property state - Co-borrower / who is on the note - Who to cover - Income, beneficiary, existing coverage that could cover the loan We do **not** collect BMI, height, weight, tobacco, or disease details in this script. ### How long does this take? - Fact-find call: about 8–12 minutes if loan numbers are ready - Application: often same day once they consent - Issue: depends on the carrier ### When is the sale complete? When the policy is **issued** (or the application is submitted and pending issue), covering the mortgage balance for the named insured(s), with premium acknowledged and delivery/requirements cleared. ### Can you guarantee I’ll be approved? No. Only the issuing company can approve, rate, postpone, or decline. --- ## Privacy and compliance ### Why are you calling me? The customer came through a loan lead, mortgage desk, CRM, or dialer list. Identify the agency, the purpose (mortgage protection), and offer a callback if now is not convenient. ### Will you share my loan details? Loan and household answers are used for quoting and the application with appointed carriers and for the case file. Do not collect more than this vertical needs. --- ## Quick customer-facing lines **What we help with** > Coverage that can help protect the home loan if something happens to you. **What we do not do** > We are not refinancing your loan or selling medical insurance. We are not collecting medical history on this call. **No bind** > I’ll size coverage to your remaining mortgage. The insurance company makes the final decision.