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.
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Individually Owned Life Insurance vs. Mortgage Insurance:
Control
Control
Individually Owned Term Life Insurance
You own the coverage and choose who receives the death benefit
Mortgage Insurance from lender
Coverage declines as your mortgage is paid off. Premiums stay the same
Guaranteed Premiums
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
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
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
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 me today if you want to explore the benefits of individually owned life insurance.
Have Questions? Contact me:
EMAIL: JAMES@JAMESKRAMER.CA
CALL/TEXT: 236-518-1211
306-6325 204TH STREET
LANGLEY, BC, V2Y 3B3
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