Your home is probably the biggest investment you’ll ever make. When you arrange a mortgage with a financial institution, they may ask you if you want to insure your mortgage through them. But mortgage insurance from your bank or mortgage lender may not be your best alternative.
Consider Term Life Insurance which is portable to any institution should you decide to change your lender down the road. This Illustration shows the cost difference between taking a 10 year term policy, a 20 year term policy and a 25 year term policy.
If you require coverage for only 10 years, then a 10 year term would be the best choice. However, most mortgages are amortized over 25 years and thus the coverage needs to last for 25 years.
*The illustration below is based on a male non-smoker aged 35 for a $350,000 term 10, 20 and 25 benefit.