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
ControlYou own the coverage and choose who receives the death benefitLender owns the policy and they are the beneficiary
Guaranteed PremiumsYour rates are guaranteed for the life of the policyMortgage insurance rates are not guaranteed and can increase
PortabilityCoverage remains intact if you switch lendersYou need to reapply for coverage if you move lenders
Level Coverage AmountCoverage amount stays the same even as your mortgage decreasesCoverage declines as your mortgage is paid off. Premiums stay the same
ComfortUnderwritten at the time of application.
No surprises at the time of claim
Underwritten at the time of death

Reach out today if you want to explore the benefits of individually owned life insurance.