Consumer Alert: Steer Clear of Mortgage Protection Insurance Scams 

If you’ve opened your mailbox to find a flood of offers for home mortgage protection insurance, you’re not alone. An increasing number of Unlock customers are receiving these solicitations once their home equity agreements have been recorded on their titles. Because that information is public, it often triggers an onslaught of direct mail from both legitimate companies and scammers trying to sell you mortgage-related products you probably don’t need. 

Mortgage protection plans are one example. Also known as mortgage life insurance, mortgage protection insurance pays off a mortgage in the event of a homeowner’s death. Instead of making a payout to your heirs, mortgage life insurance pays off the lender, tying the value to the balance on the mortgage. As the balance declines so does the benefit. 

Offers for mortgage protection insurance are often disguised to look like they come from your lender or Unlock. This is designed to confuse you. Please note that Unlock does not communicate with customers by mail and we don’t authorize third-party vendors to contact you by mail on our behalf. You will receive emails from us, but they will be clearly identified with Unlock’s branding, including our corporate address and website, and will come from an Unlock email address. 

Here are some tips on what to do if you find mortgage protection plan offers lurking in your mailbox:

• Don’t panic. Despite urgent calls to “act now” to avoid delaying coverage and threats that your family could be at risk without coverage, you’re under no obligation to buy mortgage protection insurance. You can simply throw away or shred the offers if you’re not interested.
•  Protect your identity. Don’t provide your social security number, bank account number or other financial information to a company selling mortgage protection insurance. Legitimate insurers don’t require that kind of information to provide a quote. 
• Opt out. It’s difficult to stop the barrage of offers unless you act. If the mailer you receive includes contact information for the company offering the insurance, call or email them and ask to be removed from their mailing list.
• Stop junk mail solicitations. Consider contacting the Federal Trade Commission to opt out of pre-screened credit card and insurance offers. You can opt out permanently or for five years by visiting optoutprescreen.com or calling 1-888-5-OPT-OUT (1-888-567-8688).
• Shop around. If you’re worried about leaving loved ones with an unpaid mortgage, contact your insurance agent to check on your current coverage and research insurance options. Term insurance is a better alternative than mortgage protection insurance in most cases. 
  
  Still have questions? Feel free to contact us at 1-800-560-3450, option #2 or at  [email protected].