MORTGAGE PAYMENT PROTECTION PLAN

FAQ

 

  1. Can the beneficiary take the death benefit in a lump sum instead of a monthly payment?
  1. Yes. The lump sum is equivalent to the discounted value of the monthly payments to the end of the term period - a.k.a present value of future payments or "commuted value"

 

  1. What riders can be added to a MPPP when it is sold as a stand alone policy?
  1. The only "rider" that can be added is the Children's Term Rider. You may also add WP, ADB or B2000 "benefits".

 

  1. Is the term period always 15 or 30 years regardless of issue age?
  1. Yes. The term period is always either 15 years or 30 years. Remember that the term period starts when the policy is issued and expires at the end of either 15 or 30 years from that time. The monthly income will begin with the insued's date of death and continue until the end of the original term period.

 

  1. Is the minimum advance limit $260?
  1. Yes

 

  1. Is the coverage convertible?
  1. Yes, coverage is convertible up to 2 years prior to expiry, but not past age 75.

 

      Q.  Does the commuted value vary by issue age?

      A.  No.  If a 30 year old takes out a $500 a month 30MP and a 50 year old takes out a $500 a month 30MP,  if               they   both die at the 10th policy year the commuted value for both policies will be $79,000  (that's 15,800               times 5)

 

  1. Does the Page 3 show the Monthly Income or the Commuted Value?

      A.. Both. At the bottom right side of Page 3, the Monthly Income is in the spot that usually shows the face               amount. There is a table of commuted values at the top of Page 3. You can order a specimen policy by              clicking here: