April 16, 2018

The Bi-Weekly Benefit Plan

Your home is important to you. It is not only a shelter for you and your family; it is a place of memories, hopes, and dreams. What would happen to your home and family in the event of your untimely death? Would they have the resources necessary to continue the quality of life they have become accustomed to?

Why would I consider a Bi-Weekly Benefit Plan? 

If you’ve ever purchased a home, you know first-hand how stressful it can be. By the time you’ve signed the unending list of legal documents, the last thing you want to think about is what could happen to your home if anything ever happened to you. National Mutual Benefit’s Bi-Weekly Benefit Plan can help you simplify things by making your monthly mortgage payment for you while providing the protection of a universal life insurance policy. For over 20 years, the Bi-Weekly Benefit Plan has provided participating NMB members with peace of mind knowing that their loved ones could stay in their home in the event of their premature death.

How does the Bi-Weekly Benefit Plan work?

National Mutual Benefit deducts your account for half of the amount of your mortgage and life insurance premium every two weeks and makes your monthly mortgage payment for you—you don’t have to do anything! By paying on this bi-weekly schedule, you make two additional half payments each year which help fund a universal life insurance policy. This program works with any mortgage, old or new. There is no need for refinancing, re-qualifying, credit checks, or closing costs.

What are the advantages of this program?

One of the greatest advantages of this program is the opportunity to possibly pay off your mortgage faster. As you continue paying your mortgage down, the cash value in your universal life insurance policy keeps building up. Once you have built up enough cash value, you have the option to make a withdrawal from your policy and pay off the remainder of your mortgage.

The Bi-Weekly Benefit Plan also minimizes the total number of bills you have to pay. Additionally, since many people are paid on a bi-weekly basis, it is convenient to budget for payments that coincide with a pay schedule.

Why do I need life insurance?

Life insurance protects your loved ones in the event of your untimely death. Your designated beneficiary will receive the death benefit to help them maintain their quality of life or pay the mortgage.

What is universal life insurance?

Universal life insurance is a type of life insurance policy that offers flexible premiums and an adjustable death benefit, as well as the potential to build cash value. These features make it ideal for those who want a program that can change along with their needs. Because of its flexibility, universal life insurance can be a great tool for achieving a wide variety of financial goals.

What is cash value?

Cash value is money that can build up in a universal life insurance policy. If your policy has cash value, it can be used for whatever you need it for, whether that be paying off your mortgage faster, education expenses, home improvements, retirement, or if an emergency such as unemployment or disability occurs. Cash values can be accessed through loans and/or withdrawals. It is important to note that withdrawals from some policies may be subject to surrender charges and could have a permanent effect on the cash value or death benefit.

What happens to my life insurance policy if I pay off my mortgage?

If you use the cash value to pay off your mortgage early, you have some options. You can decide whether you want to continue funding your policy or cancel—whatever works best for you and your situation. Because universal life insurance policies are flexible in nature, you may also choose to reduce the face amount to meet your new needs.

Who should consider applying for a Bi-Weekly Benefit Plan?

If you own a home, the Bi-Weekly Benefit Plan could be a very good fit for you. Life insurance can ensure that your family, or others who live with you, are able to stay in the home if the unthinkable happens to you. If you own a home with your spouse, you can apply for a joint policy that would protect both of you.

What happens if I move?

All you have to do is let us know! Your policy isn’t tied to one particular mortgage, so it can easily move along with you once you provide us with the new details.

Why National Mutual Benefit?

Because National Mutual Benefit is a fraternal life insurance society, a policy with us provides value-added benefits exclusively available to our members at no extra cost. NMB offers special fraternal bonus programs, some of which include the Newborn Insurance Benefit, Orphan Income Benefit, and Disaster Benefit. There may also be an option to add a Living Benefit rider to your policy, which provides for the advancement of your life insurance benefits while you are still alive in the event of terminal illness or nursing home confinement. NMB strives to provide meaningful fraternal programs and benefits for our members as well as high quality insurance products and services.