loanDepot, a mortgage lender, teamed up with a large insurance provider to bring a new iniative to the new origination market.
The company’s partner? Aflac.
Now in addition to closing on their mortgage, borrowers will receive one year of Aflac’s Critical Illness Insurance, up to $30,000, at no extra cost.
While the partnership may seem out-of-the ordinary, it is not without reason. According to loanDepot, 62% of U.S. bankruptcies are caused by medical bills, despite the fact that 75% have medical insurance.
So this way, loanDepot is covering some of its risk on new borrower defaults, too.
But that’s not all. Another 27% of people in medical debt have housing-related problems such as missed mortgage payments. Many foreclosures, about 49%, are also partially caused by medical problems.
So while the partnership is uncommon, it just might be providing borrowers with exactly what they need in the purchase of their new home.
Here are some of the benefits in Aflac’s plan that loanDepot’s new borrowers will receive:
- No pre-existing condition limitation
- Benefits are paid regardless of any other insurance you may have
- No waiting period once the loan funds (effective date coverage)
- Access to Health Advocacy, Medical Bill Saver and Telemedicine services