Mortgage Protection Insurance: When Are You NOT Covered?

If you decide to take out mortgage protection insurance (MPPI) along with your mortgage, you will find your monthly payments are higher. This may give you a sense of security, as you believe that your repayments are safe whatever happens. However, some people get a nasty shock when they find that, despite making the higher monthly payments, they are not covered when problems do arise.

So what might be excluded from mortgage payment protection insurance?
• Pre-existing medical conditions – any condition you were already suffering from when you took out the policy, whether you had received treatment for it, or just whether it could be proved that you knew about it.
• Unemployment, if you knew you were likely to lose your job, or be made redundant, when you took out the policy. It is also excluded if your work was temporary or seasonal. You may also be excluded if you are not registered as unemployed or not seeking alternative employment – which seems rather hard if you have been paying your premiums!
• Loss of your job if you left work voluntarily or were required to leave for disciplinary reasons, or because of industrial action.
• If your “sickness absence” from work is due to conditions which might be regarded as “psychological” or self-induced. These could include stress, backache or depression. These conditions could be excluded even if you had certification from your doctor that you were unfit to work.
• Any disability for which you had received treatment or advice during the preceding year, or for which medical evidence has not been provided by a registered medical practitioner.
• Pregnancy. This should not be a major problem if you can claim full maternity benefits.

Not all of these are excluded by all mortgage protection insurance policies, but all are excluded by some! It can be very hard to discover in advance exactly what is excluded. To avoid getting a nasty shock when it’s too late, use a broker who is experienced with these types of policy to help you find the best policy for your own needs.

Sean Horton is a Director of Enhanced Wealth Limited who offer a specialist mortgage payment protection insurance policy

If you decide to take out mortgage protection insurance (MPPI) along with your mortgage, you will find your monthly payments are higher. This may give you a sense of security, as you believe that your

Tag: mortgage payment protection insurance, mppi

Are Life Insurance Policy Loans Taxable?

Life Insurance Policies are another way to accumulate tax deferred wealth and it is possible to borrow against the cash value. But are Life Insurance Policy Loans Taxable?

A permanent life insurance policy has the added feature of accumulating a cash value over the life of the policy. This cash value can be used as security for a Life Insurance Policy loan. It is considered as security for the loan because it does not negate the coverage afforded by the policy as long as the loan is repaid. This fact impacts the taxation picture because it means that you are not actually receiving a distribution of the cash value.

Although the premiums paid on Life Insurance Policies are not allowable as a tax deduction, the earnings in the policy are not taxed either. In this manner, the policy acts similar to other forms of tax shelters such as IRA or 401k retirement accounts. Also, the death benefit that would be paid to your beneficiary upon your demise is normally not subject to taxation either. However, should you surrender your policy and take the cash value, the proceeds above the amount of your premiums would be subject to taxation.

If you borrow against the cash value of the policy, however, it is not really a distribution. It is not considered income because the amount will have to be paid back eventually and also you will have to pay interest on the loan. Many people fail to understand this principle and feel like they are borrowing their own money and wonder why they are paying interest.

The answer is that they are not borrowing their own money at all. Their money is still in the Insurance Account and still performing the intended function of providing security in case of the death of the policy owner. It would also still be accumulating earnings in accounts where the cash value is invested. It is not considered income anymore than a Mortgage loan or auto loan would be considered income for the purposes of taxation.

If failure to repay the loan leads to a lapse or cancellation of the policy, this will have tax implications. Since the cash value of the policy would, in a sense, be used to repay the loan, the amount paid would be considered income as would any additional funds distributed upon the surrender of the policy. Life Insurance taxation issues are even more of a minefield of complex regulations than even the norm for other types of investments. You are going to need to touch base with your tax expert and Insurance Agent to navigate this minefield successfully.

Barry Waxler provides financial planning in San Diego through UFCAmerica.com.

Life Insurance Policies are another way to accumulate tax deferred wealth and it is possible to borrow against the cash value. But are Life Insurance Policy Loans Taxable?

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How To Compare Low Cost Health Insurance In Connecticut

Connecticut residents need to keep a few things in mind when they are comparing their low cost health plans. It’s best to pick a plan that will fit your lifestyle. Here are a few things to consider:

1.Alternative care: If you find that you infrequently go to a medical doctor and prefer to go to an acupuncturist or a chiropractor, make sure you select the plan that will accommodate your wishes. Many plans will only allow a few visits to alternative care practitioners. Let’s face it, your practitioner knows which insurance companies are the most receptive to alternative care. Make sure you get advice from your practitioner as to which companies to select from

2.Keeping the same doctors: Do you have special medical needs that are treated by a doctor that you’ve developed a relationship with? It takes years to build a doctor patient trusting relationship. If you value your relationship with your doctor, you should obtain a listing of insurance plans that your doctor accepts. Those companies are the ones you should use when shopping for low cost health insurance

3.Out of Pocket Expenses: Can you handle large co-pays and high deductibles? Usually the lower your co-pay, the higher your premium and visa versa. Determine how much you can afford to pay out of pocket.

4.Pre-Existing conditions: If you are currently being treated for a particular illness or condition, you might have to continue with your current insurance company. Many insurance companies will not provide coverage for pre-existing conditions.

5.Children: If you don’t have children and are not planning to have any, then coverages like pediatric care and pre-natal care is not of a concern. However, if you have children or are thinking of having children, check with your pediatrician as to which insurance companies he/she accepts.

6.Shop Around: The key to getting the best possible price on health insurance is to get alternative quotes and compare.

My recommended sites here: Low Cost Health Insurance in Connecticut Instant Health Insurance Quotes Online

Connecticut residents need to keep a few things in mind when they are comparing their low cost health plans. It’s best to pick a plan that will fit your lifestyle. Here are a few things to consider:

1.Alternative care: If you find that you infrequently go to a medical doctor and prefer to go to an acupuncturist or a chiropractor, make sure you select the plan that will accommodate your wishes. Many plans will only allow a few visits to alternative care practitioners. Let’s…

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