Product Proposition for Mortgage Term Insurance

[JuniorASA]

As the mortgage term insurance / Credit Life are a purely reducing term insurance, the competition area might focus on lower price only.

Is there any other product proposition / selling angles in order to promote mortgage reducing term / credit term life insurance product in US and Canada?

Thanks for thought!

[Chuck]

Actually, my understanding of most of the US mortgage term market (which obviously has taken a big hit since 2008) is the use of more traditional level term insurance (15,20,25,30, 40 year level term). Simplified issue is big as are/were bells and whistles such as ROP, spouse term, disability riders, unemployment riders, etc.

Even though reducing term better matches the mortgage balance, there is probably always a need for the full level death benefit, and I suspect there is probably better reinsurance options available for level term.

Chuck

[JMO]

Originally Posted by JuniorASA

As the mortgage term insurance / Credit Life are a purely reducing term insurance, the competition area might focus on lower price only.

Is there any other product proposition / selling angles in order to promote mortgage reducing term / credit term life insurance product in US and Canada?

Thanks for thought!

According to an old study note, credit insurance sold by the lender competes not on low price but high commission. In the US, at least, this has led to maximum rates imposed by the regulators.