If you and your co-borrower die from the same accident within 30 days of each other, a benefit equal to the amount of insurance in force on both borrowers will be paid as follows: First, the payment will be applied toward repaying your loan. Second, any amount remaining will be paid in equal shares to your beneficiaries.
The amount of your insurance in the Basic Plan will be the total of:
the principal loan balance,
any unpaid interest due on the principal loan balance,
any unpaid insurance premium due on the principal loan balance,
any expenses incurred before the date of death that are chargeable to the loan balance, and
any current tax constant for real estate taxes included in the standard payment and applied to the principal balance for current payments received from December 1 each year to the date of death.
When does the Guaranteed Issue plan become effective?
Individuals offered the Guaranteed Issue Plan will receive a special enrollment form. Insurance will become effective after the completed form has been approved by The Standard.
When does ODVA Loan Cancellation Life Insurance end?
On the earliest of the following:
the date on which your loan is repaid in full
the last day of the calendar month in which you give written notice to the ODVA that you wish to stop the insurance
the date there is a title change on the insured loan
the date any loan payment becomes more than four months past due
the date the group policy terminates
if you have joint insurance, the date on which the first insured person dies, if the entire loan is repaid, or
the date on which there is any transfer of ownership of the property securing the insured loan.
Insurance will not end if:
the transfer of ownership is to a trust, the trustors of which include only the approved borrower and/or the spouse, and the beneficiaries of which include the approved borrower, the spouse, the surviving children or stepchildren of the approved borrower, or any combination thereof; or
the borrower and/or spouse/former spouse are insured and the transfer is to one of these persons as sole owner; or
the borrower under a contract sale remains obligated for payment on the loan.
Must you cancel other life insurance policies to be insured under this plan?
No. In fact, mortgage cancellation life insurance protection is typically considered a vital addition to any current life insurance plans you may have.
The rates for this coverage are not guaranteed. You will be told at least 30 days in advance of any changes in the rates.
Loan Cancellation Life Insurance is invalidated if the insured person dies in the first year of coverage as a result of suicide or self-inflicted injuries.
