The Differences are Significant
You’ve just purchased a home. There is paperwork everywhere. Most do not understand that mortgage insurance sold by lending institutions differs from traditional Life Insurance. Coverage amounts, application processes, underwriting and claims are all handled differently. A licensed Insurance Broker can educate you on what policy and coverage amount fits you and/or your family.
The value of a Life Insurance policy far exceeds that of lending institution mortgage insurance.
Mortgage Lender Insurance vs Life Insurance
Examining the differences in coverage
- Your insurance covers your outstanding balance.
- Your mortgage debt reduces over time but you pay the same premium.
- At claim, only the outstanding mortgage balance is paid off.
- The mortgage lender is automatically the beneficiary.
- If you take your mortgage to another lender, you may lose coverage.
- Lender insurance can have higher premiums and underwriting is done at claim time, which can be worrisome.
- You can choose different policies with varying face amounts.
- Your face amount does not decrease unless you choose so.
- At claim, the benefit is paid to your beneficiary, who can use it as they see fit.
- You name the beneficiary.
- If you move your mortgage to another lender, your policy is unaffected.
- Underwriting for Life Insurance is completed at application time, guaranteeing coverage if approved.
Protect Your Biggest Debt
Contact us today to discuss Life Insurance options that suit you best