Congratulations on your new home!
Buying a home is one of life’s biggest milestones. Protecting it is just as important. When you get a mortgage, you’ll usually have two options: mortgage insurance through your lender or an individually owned life insurance policy. Although both provide protection, they are not the same.
Here’s a simple comparison to help you choose the option that’s right for you.
1) CONTROL
Individually Owned Life Insurance vs. Mortgage Insurance:
Mortgage Insurance
from lender
Coverage declines as your mortgage is paid off. Premiums stay the same
Individually Owned
Term Life Insurance
You own the coverage and choose who receives the death benefit
2) GUARANTEED PREMIUMS
Mortgage Insurance
from lender
Mortgage insurance rates are not guaranteed and can increase
Individually Owned
Term Life Insurance
Your rates are guaranteed for the life of the policy
3) PORTABILITY
Mortgage Insurance
from lender
You need to reapply for coverage if you move lenders
Individually Owned
Term Life Insurance
Coverage remains intact if you switch lenders
4) LEVEL COVERAGE AMOUNT
Mortgage Insurance
from lender
Coverage declines as your mortgage is paid off. Premiums stay the same
Individually Owned
Term Life Insurance
Coverage amount stays the same even as your mortgage decreases
5) COMFORT
Mortgage Insurance
from lender
Underwritten at the time of death
Individually Owned
Term Life Insurance
Underwritten at the time of application.
No surprises at the time of claim
LET’S GET STARTED
Have questions? Contact me
