Insuring your mortgage makes good financial sense. However there are significant and costly differences between bank/creditor issued mortgage insurance and personally owned life insurance.
There are several questions to add before making an insurance commitment:
1. Do I determine the beneficiary of the policy?
Life Insurance: YES
Mortgage Insurance: NO
2. Is my insurance qualification determined before or after my death?
Life Insurance: BEFORE
Mortgage Insurance: AFTER
(*Mortgage insurance policies use post claims underwriting, where they determine at death if your mortgage will get paid.)
3. What is the cost difference between life insurance and mortgage insurance?
Take a look at this comparison 40 year old male and 40 year old female (standard non-smokers) with a $300,000 mortgage amortized over 20 years.
If you have any questions, or would like a quote, our knowledgeable team of financial advisors are here to help you. Call today and let the savings begin!
