Should you have your mortgage insurance with your lender?
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 Term Life Insurance | Mortgage Insurance from lender | |
| Control | You own the coverage and choose who receives the death benefit | Lender owns the policy and they are the beneficiary |
| Guaranteed Premiums | Your rates are guaranteed for the life of the policy | Mortgage insurance rates are not guaranteed and can increase |
| Portability | Coverage remains intact if you switch lenders | You need to reapply for coverage if you move lenders |
| Level Coverage Amount | Coverage amount stays the same even as your mortgage decreases | Coverage declines as your mortgage is paid off. Premiums stay the same |
| Comfort | Underwritten at the time of application. No surprises at the time of claim | Underwritten at the time of death |
