Individually Owned Life Insurance vs Mortgage Insurance

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.

Control

Individually Owned Term Life Insurance

You own the coverage and choose who receives the death benefit

Mortgage Insurance from lender

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.