The Bi-Weekly Benefit Plan is an alternative method of making mortgage payments that is combined with a universal life insurance policy. Instead of paying your entire mortgage once a month, NMB drafts your account for half of the amount every two weeks and makes your monthly mortgage payment for you. By paying every other week, you make two additional half payments each year, which are used to help fund a universal life insurance policy.
Convenient and Simple
Combining your mortgage and life insurance payments minimizes the number of bills you have to pay. Since many people are paid on a bi-weekly basis, it is convenient to budget for mortgage payments that coincide with their pay schedule. The plan works with any mortgage, old or new, without refinancing, requalifying, credit checks, or closing costs. If you ever move or refinance, simply provide us with your new mortgage information.
Pay Your Mortgage Faster
Over the years, the balance of your mortgage goes down and the cash value of your life insurance policy goes up. When you have built up enough cash value, you can make a withdrawal from your policy or take a loan from it to make a payment toward, or even pay off your mortgage.**
Advantages of Universal Life Insurance
Flexibility
The amount and schedule of premium payments can be adjusted. You also have the option to change the death benefit (increases may require proof of insurability).
Death Benefit
Your beneficiaries will receive an income tax-free* benefit upon your death.
Cash Value
Depending on the premiums paid, funds can accumulate in your policy and may be available for any purpose you see fit.**
Interest Rates
Our universal life insurance policies have two interest rates—the current rate and the guaranteed rate. The cash value of the policy will earn the current rate, which will fluctuate; but it will never earn less than our guaranteed rate.
Single or Dual Coverage
NMB offers an individual universal life insurance policy as well as a dual universal life insurance policy. The dual policy insures two people and benefits are paid upon the death of the first insured.
*According to current tax laws, IRC Sections 101 & 7702. For Minnesota residents, Minnesota Statues Section 290.01, Subd. 19.
**Cash values can be accessed through loans and/or withdrawals, but these will reduce the death benefit. In addition, withdrawals from some policies may be subject to surrender charges and could have a permanent effect on the cash value and death benefit.
