Mortgage protection insurance reviews
Is Mortgage Protection Insurance a Scam?
It may surprise you, but finding out who’s recently purchased a home is public information. Information on who purchased or refinanced a home loan, the lender, the loan amount, and the address the loan is associated with is readily available. Companies reach out to new homeowners at this time to offer them mortgage protection insurance.
What is Mortgage Protection Insurance?
Mortgage protection insurance is actually a type of life insurance that helps your family stay in their home if you unexpectedly pass away. The money they receive can be used to pay off their mortgage, pay down a portion of it, or keep making payments. The bottom line is they get to stay in the home until they decide what they need to do. Also, it is completely optional but recommended depending on your particular situation. Read our Mortgage Protection Insurance Q & A for a detailed explanation of what mortgage protection insurance is and is not to learn more.
If you have a new mortgage, you might be a target for a mortgage protection scam.
So just because the company or person knows your name, your lenders name, the exact amount of your loan and your address does not mean they are to be trusted. Thankfully, the overwhelming number of companies who reach out to you are trustworthy and will be able to help you and your family, but it’s those one or two bad apples you have to watch out for.
If anyone asked you what a scammer might want, you would probably say money, right? That could be true. But many of them are also looking for your personal information to commit identity theft, so more than your money is at stake.
Spotting the difference between legitimate mortgage protection insurance providers and ‘scammers’ can be tough, but with the right know-how, you can protect yourself against fraud.
Here are the top 6 ways to spot a mortgage protection insurance scam:
They ask for far too much information
Watch out for offers that ask for sensitive information like your social security number, bank account number, or credit card information – information that criminals can use to drain your finances, steal your identity, and ruin your credit rating. A reputable company will never ask for that information when they first reach out to you to see if you are interested in mortgage protection insurance.
They give no disclaimers about your lender
If those two disclaimers are not on the letter, run!
They list a fake address
There should be a street address and contact number on the front of the invitation letter, and you should be able to look the address up on the internet and find the actual location on Google maps. If there is no address or phone number, throw that letter away.
They list a false license number (or no license number at all)
In every single state, insurance companies, brokers, and IMO’s (Independent Marketing Organizations) are regulated by the state Department of Insurance, and must list their license number on all of their advertisements and letters to clients. So check the letter to see if there is a license number.
They threaten you with foreclosure
Some fraud artists even go as far as to threaten you with foreclosure on your home if you don’t sign up for mortgage protection insurance with them. They might send an official-looking letter saying that you must buy mortgage protection insurance by a certain date, otherwise, you’ll be in violation of the terms of your mortgage and your home could go into foreclosure. This is absolutely not true. Mortgage protection insurance is completely optional, another way to provide a financial safety net for your family, but not required. There is no relationship between mortgage protection insurance and the status of your home loan.
Interested in mortgage protection insurance, but not sure?
While it’s important to spot the signs of a mortgage protection insurance scam, it’s also important to know that most mortgage protection offers are legitimate. If you are interested in this type of insurance, follow our top tips below as you fill out an interest card or make a phone call to make sure the company is legitimate and trustworthy.
- Call them! Ask questions such as how long they have been in business, what their website is and more.
- Look them up online. A legitimate company should have a strong web presence. They should have a main website, be listed on the BBB and have various social media accounts (like Facebook).
- Read reviews about their company. Do a search for the company name and the word ‘reviews.’ You should find a variety of listings and ratings.
- All companies will have a mix of positive and negative reviews, but if they only have negative or no reviews, that’s a warning sign.
- What do their employees or partners say? Do a search for the company on a website like Glassdoor. This is a site where the employees or independent contractors leave reviews of the companies they work with. Again, you will see a mix of positive and negative reviews for all companies, but as you read through them, you will get a general sense of whether the company is legitimate or not.
You don’t have to respond to just one!
If you have received several offers for mortgage protection insurance, you don’t have to respond to just one. Respond to as many as you like, either through mail or over the phone. Do your homework and go with the one you trust.
Want to opt out of all sales material? You can!
- Contact the Direct Marketing Association to sign up for their mail preference service.
If there is just one specific company you would like to stop all contact with, call or mail them directly to let them know, and they will no longer contact you. Unfortunately, there is no way, at this time, to opt out of sales emails. But thankfully there is the trusty spam inbox to get the unwanted spammy emails out of your main inbox.
Just as we want to protect you against scams, Asurea is dedicated to protecting you, and your loved ones with insurance. Asurea offers Mortgage Protection, Medicare Supplements, Final Expense, Retirement Solutions, Life Insurance and more. To find out more, click on the ‘Get A Quote’ button below.
Want to receive more articles like this in your email? Just enter your email and click ‘Subscribe.’