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 Life Insurance vs Mortgage Insurance.
Control
| Individually Owned Term Life Insurance | You own the coverage and choose who receives the death benefit |
| Mortgage Insurance from lender | The lender owns the policy and they are the beneficiary |
Guaranteed Premiums
| Individually Owned Term Life Insurance | Your rates are guaranteed for the life of the policy |
| Mortgage Insurance from lender | Mortgage insurance rates are not guaranteed and can increase |
Portability
| Individually Owned Term Life Insurance | Coverage remains intact if you switch lenders |
| Mortgage Insurance from lender | You need to reapply for coverage if you move lenders |
Level Coverage Amount
| Individually Owned Term Life Insurance | Coverage amount stays the same even as your mortgage decreases |
| Mortgage Insurance from lender | Coverage declines as your mortgage is paid off. Premiums stay the same |
Comfort
| Individually Owned Term Life Insurance | Underwritten at the time of application. No surprises at the time of claim |
| Mortgage Insurance from lender | Underwritten at the time of death |
Reach out to us today if you want to explore the benefits of individually owned life insurance.
If interested in learning more,
Don’t hesitate to reach out to us today.
CFS Wealth 1-888-451-6133 or fill out our contact form.
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