Mortgage life insurance for veterans offers mortgage protection to veterans and their families with serious service-related disabilities who have gotten homes that suit their needs. In addition, this insurance is made available and can only be obtained by veterans and their families. It covers mortgage-related bills for disabled veterans and their families. Depending on the amount of mortgage you have, the amount of coverage you will get is determined.
However, while this is so, this life insurance does not exceed its maximum coverage limit. This means if your mortgage exceeds the maximum limit, this mortgage life insurance for veterans will no longer offer coverage after the limit has been exceeded. This life insurance reduces over time as your mortgage payments are being made. However, this life insurance offers no loans, dividends, or cash values. As long as you are eligible for this insurance, you can apply, get approved, and enjoy the benefits offered by this insurance.
Before opting for this insurance, read through this write-up for proper knowledge.
Who is Eligible for Mortage Life Insurance for Veterans?
Not every citizen can purchase this mortgage life insurance. This is because this insurance is designed for only veterans. While this is so, not every veteran is eligible for this life insurance. Veterans who are eligible for this insurance include:
- Veterans or service members with serious service-related disabilities.
- Be a veteran with a home title (including partially).
- Service members who are below age 70.
- Veterans who receive a Specially Adapted Housing (SAH) or a Special Housing Adaptation (SHA) grant for assistance in building, purchasing an adapted home, or remodeling.
- Those who have a mortgage on their homes are required to pay back.
Veterans who fall under these cases are eligible to apply for this life insurance. However, it is important to confirm if you are eligible for this insurance to avoid complications in your application.
What Mortgage Life Insurance for Veterans Covers
This insurance for veterans pays up to $200,000 for outstanding mortgage payments for its policyholders. However, this payment is made only to the mortgage lender, not the policyholder. Aside from all of these, this life insurance covers the following:
- Outstanding mortgages.
- Second mortgages.
- New mortgages.
- Refinanced mortgages.
Because of these, getting mortgage life insurance for veterans is worth it.
What Mortgage Life Insurance for Veterans Does Not Cover
While this insurance covers quite a lot of things, there are some cases this insurance does not cover. This includes:
- Home equity lines of credit.
- Reverse mortgages.
If you fall under any of these, insurance for veterans will not offer coverage; instead, you will have to make out-of-pocket payments for them.
Mortgage Life Insurance for Veterans Benefits
Getting mortgage life insurance for veterans opens you to different benefits. You may be eligible for up to $200,000 in financial assistance, which will be paid directly to your mortgage holder, to help pay off outstanding mortgage debt. Another benefit of this life insurance is peace of mind for your existing mortgage payments.
How Much Does It Cost?
Using some factors, this life insurance for veterans determines how much premiums cost. These factors include:
- The veteran age.
- Existing mortgage balance.
- Length left of the mortgage payments.
In cases where these factors are of high risk, you may be required to pay more on premiums than the average mortgage life insurance for veterans costs.
How to Apply for Mortgage Life Insurance for Veterans
To apply for this life insurance as an eligible veteran, you need to fill out the veteran’s mortgage life insurance statement through the website. During the application process, veterans are required to provide information about their existing mortgage along with other information. Aside from this, you can also apply for his insurance through your Special Adapted Housing Agent.
What Happens if I Move, Refinance, or Make Other Changes to My Mortage?
Mortgage life insurance for veterans generally covers only your primary residence, meaning the home you live in frequently or permanently. You can remain in your coverage if you inform your insurance for veterans of every and any changes you make to your home. These changes include:
- Home refinancing.
- Moving your mortgage
- Liquidating your mortgage.
- Mortgage transfer from one lender to another.
- Sell your home.
If you make any of these changes, it is very important to inform your insurer.