Mortgage Life Insurance

I got an offer from Union Security Insurance Company, on the behalf of Chase to get some Mortgage Life Insurance, in that if either my father or I die in an accident, it will pay off the mortgage on our home. It states that we must die with in 365 days of a covered accident (90 days in MD), and is covered no matter what other type of coverage we may have.

Considering I have a huge amount of trouble trying to find my dad life insurance because of his diabetes, I am giving this some serious consideration.

It would cost about $24 a month to insure both of us each month. Not too hefty of a cost.

The only downside is that it’s only in case of accidents, so no natural death type of thing. So I’m still going to run into problems in that case. Hopefully I can find someone who will insure him for at least $10k. I think that’s really all I’d need.

Some notes from the form, it states that this is NOT:

• FDIC Insured
• Insured by any Federal Government Agency
• Not guaranteed by the bank

It also states that it will pay 100% until my dad is 69, whereas afterwards it will start to decline. Age 70-74 it declines to 50%, and age 75 and up it declines to 25%.

Has anyone ever purchased this type of insurance before?