Buy a term instead of a mortgage insurance:
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Save money
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Gain flexibility
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Protect your family better
SAVE ON MORTGAGE INSURANCE NOW
Your mortgage lender has offered you to insure the debt with an attached to it life insurance and in some cases with critical illness insurance or disability insurance. This is an important protection for your family. It provides you with the piece of mind that your family will be able to keep your home if you were to pass away.
Personal life insurance is often cheaper.
Buying a personally owned life insurance in most cases is cheaper than the life insurance offered by the lender. For very young mortgage owners, 20 to 25 years old, the prices of both products are similar, but for any person above that age and in regular health, a term-10 life insurance would be generally cheaper than the mortgage insurance. For non-smokers the price advantage of the personal life insurance is even bigger.
The personal life insurance is usually of a higher quality.
The mortgage insurance pays the death benefit directly to the bank, while the personal life insurance pays the benefit to the family. This provides the family with much more flexibility needed so much in a moment of crisis. The mortgage insurance covers only the outstanding debt. This means that the death benefit is constantly decreasing. The personal life insurance is with level death benefit. The mortgage life insurance is usually with limited underwriting at time of approval, which opens the door for more underwriting at time of claim. with personal life insurance the initial approval process is much more thorough and because of this, the death benefit is guaranteed. The mortgage insurance is usually attached to mortgage and to the lender which obstructs changing banks and searching for better mortgage rates. The personal life insurance provides you with the freedom to shop for better mortgage conditions without worrying about your family protection.