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!