When taking out a mortgage with a lending institution you should cover off that debt with an insurance policy. Not all coverage options are created equal. Let’s look at the highlights of the two options available to you.
Individually Owned Life Insurance vs. Mortgage Insurance:
Individually Owned
Term Life Insurance |
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| You own the coverage and choose who receives the death benefit |
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Mortgage Insurance
from lender |
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| Coverage declines as your mortgage is paid off. Premiums stay the same |
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|
Individually Owned
Term Life Insurance |
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| Your rates are guaranteed for the life of the policy |
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Mortgage Insurance
from lender |
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| Mortgage insurance rates are not guaranteed and can increase |
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Individually Owned
Term Life Insurance |
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| Coverage remains intact if you switch lenders |
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Mortgage Insurance
from lender |
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| You need to reapply for coverage if you move lenders |
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Individually Owned
Term Life Insurance |
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| Coverage amount stays the same even as your mortgage decreases |
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|
Mortgage Insurance
from lender |
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| Coverage declines as your mortgage is paid off. Premiums stay the same |
|
|
Individually Owned
Term Life Insurance |
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Underwritten at the time of application.
No surprises at the time of claim |
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Mortgage Insurance
from lender |
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| Underwritten at the time of death |
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Reach out to us today if you want to explore the benefits of individually owned life insurance.
