Frequently Asked Questions

Mortgage Life & Disablility insurance FAQs


Who can apply?
Is joint coverage available?
How is the premium paid?
What are the life benefits?
As I get older, will my premium payments increase?
What are the exclusions for life coverage?
When does the life coverage terminate?
What are the rates for life coverage?
What are the maximum disability benefits?
What are the exclusions for disability coverage?
When does the disability coverage terminate?
What are the rates for disability coverage?
What if I am not satisfied?

Who can apply?

  • You may apply for Mortgage Life and/or Disability Insurance if you have a mortgage that is repayable over a period of at least 10 years but no more than 40 years and the mortgage loan originated at Randolph-Brooks Federal Credit Union.
  • Persons up to age 60 are eligible for life coverage between $10,000 and $300,000. Persons between the ages of 60 and 64 are eligible for life coverages between $50,000 and $300,000. You may apply at any time while you have a mortgage.
  • You may apply for Mortgage Disability Insurance if you are under age 60, working at least 30 hours a week, and are responsible for the repayment of a mortgage loan.

Is joint coverage available?

Yes. Joint life and disability coverage is available to all members and spouses. Joint life pays a benefit for the first inured in case of death. While the survivor's coverage will end at that point, he/she is eligible for a conversion privilege. If both insureds should die at the same time from a common occurrence, a life benefit will be paid for the borrower and co-borrower. Joint disability coverage will pay half of the monthly benefit, if either one of you become disabled according to the terms of this coverage. If both of you are disabled at the same time, the insurance company will pay your total monthly benefit, not to exceed the policy maximum per month.

How is the premium paid?

With Home Assurance's convenient payment system, you'll never have to worry about forgetting a premium payment. Each month, with your authorization, the premium will automatically be deducted from the checking or savings account you specify.

What are the life benefits?

Life protection provides up to a maximum benefit of $300,000. Simply choose the amount of coverage you desire (not to exceed the amount of your mortgage) and mail your application to the address listed. In the event of your death, the Mortgage Life Insurance benefits will be calculated applying a 30-year amortization schedule to the amount of the insurance you selected at the time of the application. Your premium will not increase throughout the term of the coverage. Coverage remains in effect throughout the term of your mortgage, up to 30 years.

As I get older, will my premium payments increase?

No. Life premium is based on your age and the amount of coverage selected up to the mortgage balance of your home at the time the coverage starts. Disability premiums are based on your age when coverage starts and the disability plan you choose.

What are the exclusions for life coverage?

  • Suicide, while sane or insane, within two years of the effective date of coverage
  • Misstatement of age may affect any benefit payable

When does the life coverage terminate?

Your insurance automatically ends the first of the following dates:

  • The premium due date that you fail to pay the required premium, subject to the Grace Period (31 days)
  • The date we receive your written request to terminate the insurance

What are the rates for life coverage?

The monthly premium rate is dependent upon your age and your smoking status. To calculate your premium, please refer to the charts below. The rate listed is a cost per $1,000 of insured mortgage life benefit. Rates are based on the older insured if applying for joint life insurance. For joint life insurance, if one insured smokes, use the smoker rate for the older insured.

Single Life

Issue $10,000 - $49,999.99
Age
$50,000 - $300,000
Non-Smoker
Smoker

Under 30

$0.19

$0.11

$0.19

30 – 34

0.21

0.14

0.24

35 – 39

0.26

0.17

0.33

40 – 44

0.40

0.24

0.48

45 – 49

0.61

0.35

0.66

50 – 54

0.93

0.52

0.95

55 – 59

1.39

0.76

1.27

60 – 64

N/A

1.25

1.96

Joint Life

Issue $10,000 - $49,999.99
Age
$50,000 - $300,000
Non-Smoker
Smoker

Under 30

$0.30

$0.18

$0.30

30 – 34

0.34

0.22

0.38

35 – 39

0.42

0.27

0.53

40 – 44

0.64

0.38

0.77

45 – 49

0.98

0.56

1.06

50 – 54

1.49

0.83

1.52

55 – 59

2.22

1.22

2.03

60 – 64

N/A

2.00

3.14

What are the maximum disability benefits?

  • If you are under age 50, the plan will pay your monthly benefit for up to two years while totally disabled
  • If you are between ages 50 and 64, the plan will pay your monthly benefit for up to one year while totally disabled
  • Benefits will begin after the selected elimination period. Total Disability means for the first 12 months of disability, the insured is unable to perform the material and substantial duties of his own occupation on a full-time basis

What are the exclusions for disability coverage?

Misstatement of age may affect any benefit payable. We will not pay a benefit under this policy, for Total Disability caused by, or resulting from:

  • Pre-existing conditions: A pre-existing condition is defined as an injury or sickness for which an Insured received treatment or advice during the 24-month period immediately prior to the Effective Date of Insurance. After the Insured has been covered for 24 consecutive months, Total Disability starting thereafter will be covered
  • Suicide, attempted suicide or intentionally self-inflicted injury while sane or insane
  • Participating in a riot or committing an assault or felony
  • Alcohol intoxication, as defined by the state where the accident occurred
  • Taking any drug, medication, narcotic or hallucinogen, except as prescribed by a physician
  • Operating or riding in any kind of aircraft, except as a fare paying passenger on a regularly scheduled commercial flight
  • Outpatient, mental or nervous disorders
  • Taking alcohol in combination with any drug, medication or sedative
  • Voluntary gas inhalation or poison voluntarily taken, administered or inhaled

When does the disability coverage terminate?

Your insurance automatically ends on the first of the following date:

  • The date the Policy ends
  • The premium due date that you fail to pay the required premium, subject to the Grace Period (31 days)
  • The premium due date following the date you reach age 65
  • The date we receive your written request to terminate the insurance
  • The date you cease to be employed full-time, other than as a result of a covered disability

What are the rates for disability coverage?

The monthly premium rate is dependent upon the elimination period you select. The premium for single and joint insurance is the same. Joint disability benefits will be 50% of the monthly amount of insurance selected. The rate is a cost per $100 of insured monthly mortgage payment up to the plan maximum.

30-Day Elimination Period*
90-Day Elimination Period**
$4.25
$2.85
* means benefits for disability begin after 30 days of total disability
** means benefits for disability begin after 90 days of total disability

What if I am not satisfied?

If you are not satisfied for any reason, you may return your certificate within 30 days after receipt. Your premium will be refunded. When so returned, the certificate is void from the beginning. Return the policy and/or certificate to us at our Home Office or to your authorized agent.

RB Financial LLC is affiliated with Randolph-Brooks Federal Credit Union (RBFCU). Securities sold, advisory services offered through CUNA Brokerage Services, Inc. (CBSI), member FINRA/SIPC, a registered broker/dealer and investment advisor. CBSI is under contract with RBFCU to make securities available to members. Not NCUA/NCUSIF/FDIC insured, May Lose Value, No Financial Institution Guarantee. Not a deposit of any financial institution.