William Penn Life, 2000 (35. évfolyam, 1-12. szám)
2000-09-01 / 9. szám
Other insurance for homeowners Earn extra interest on your WPA annuity Between September I and December 31, 2000, all WPA annuity contracts will earn 61/2% interest. That’s a bonus of 'A% for the last four months of the year. If you don’t already own a WPA annuity, you can still take advantage of this end-of-theyear bonus rate. Call your WPA representative or own Home Office toll-free at 1-800-848-7366 and sign up for a WPA annuity TODAY. Are your j beneficiarie^r up to f date I THAT’S A QUESTION YOU MAY not have asked yourself very often, if ever. But, it’s one you should ask yourself at least once a year. If you think you need to update the beneficiaries listed on your policies—either primary or secondary beneficiaries-contact your WPA representative. Or, call our Home Office toll-free at 1-800-848-7366. from the Ohio Insurance Department Anyone who has ever had their home damaged by fire or had their belongings stolen from their home knows the value of homeowner's insurance. It offers vital protection for, what is most likely, your largest investment. It also protects your most precious and necessary possessions. But, as important as homeowner's insurance is, it does not cover a number of circumstances which could lead to you and your family losing your home. According to the Ohio Insurance Department, there are several other types of insurance homeowners should consider. Protecting your investment Who will make your mortgage payments if you die or are disabled? Credit insurance is one answer. Credit insurance policies spell out what has to happen before they start making your loan payments. CREDIT DISABILITY policies promise to pay your bills if you're unable to work because of illness or injury. Make sure you check the policy very carefully to make sure you understand just what's covered and what's excluded. Coverage will be excluded for health problems you already have when you buy the policy (called "pre-existing conditions"). CREDIT LIFE insurance is simply a term life policy written for the same amount as your mortgage loan. The amount of the policy decreases every year, but premiums might not. You may find it's less expensive to buy a simple term policy rather than one that's specifically marketed as credit life, so shop around. Protecting your lender Your worst nightmare: a stranger shows up some years from now claiming to be the rightful owner of your house. But you remember paying for TITLE INSURANCE when you closed on the loan. Title insurance protects you against possible problems with the deed to your house, including missing heirs, old mortgages or easements. If the stranger has a legal claim to your house, title insurance pays. But, the policy automatically included in your closing costs probably protects the lender only. Unless you also bought owner's title insurance, the title insurance company will pay the lender the balance of your mortgage and you would lose the title plus any equity you have in your house. PRIVATE MORTGAGE INSURANCE (PMI) could fool you. It likely showed up when you closed on your mortgage. Banks normally require you to buy PMI any time you borrow more than 80 percent of the value of the house. Premiums are built into your mortgage payments, but PMI does not protect you.. .it protects the bank from losing money if you default on your mortgage. After you've made enough mortgage payments to bring the loan balance below 80 percent of the home's value, the bank should stop collecting PMI premiums from you. Check the paperwork from your closing. Determine what type of insurance coverages are protecting you and your home and what they're costing you. Then seek the advice of an insurance professional to see if you need to add any coverage. QvpjTJ Money Links Insurance regulations vary from state to state. Check with your state’s insurance department for information on homeowner’s and other types of insurance. On the Internet, search under your state’s name followed by the words “insurance department.” A link for the appropriate website should appear in the search results. 4 IVilliam Penn Life, September 2000
