Mortgage Life Insurance serves two distinct needs: protecting your family and helping you save for the future.
What is Mortgage life insurance?
Peace of mind for both your coverage and wallet.
Life insurance can protect the financial security of the ones closest to you by giving them a tax-free payment if you pass away. By customizing your own personal plan to fit the needs and goals for you and your family, life insurance provides peace of mind for you and your loved ones. The type of life insurance your purchase should be based on your needs first and product second. This is why we work with you to help determine the best solution for you. GET A QUOTEMortgage Insurance Comparison
| Mortgage Insurance (from the financial institution) | Your Personal Policy | |
| Ownership Who owns this policy? | Typically owed by the lender. The lender may control what happens to the coverage. | Owned by the client. They control what happens to their life insurance coverage |
| Beneficiary Who determines who will get the benefits? | The lender is often the beneficiary and receives the proceeds to pay off the mortgage. Clients may have no choice in how the proceeds are spent. | The client decides who is named beneficiary and receives the proceeds. |
| Renewability Can someone other than the policy owner cancel coverage? | Yes. The lender or issuing company may cancel the policy. Often, coverage ends with the expiry/cancellation of the mortgage. | No. Although the coverage offers mortgage protection, it’s not tied to a specific mortgage or need. When the mortgage is finished, coverage may remain in force, except in the event of nonpayment of the life insurance premium |
| Portability Can coverage continue if the client changes companies or moves? | Creditor insurance lacks portability and may end when the mortgage is repaid, assumed, canceled, the house is sold or the group policy terminates. | Yes. Coverage is portable and can be used to cover another mortgage, if desired. |
| Benefit Amount Is the benefit amount level? | Benefit typically declines proportionally to the outstanding mortgage balance, if it’s decreasing term insurance. | Yes. Amount of benefit can remain level even though the mortgage balance reduces. |
| Can clients apply for more coverage than the mortgage amount? | Benefit amount is usually only for the amount of the mortgage and there are limited options if changes to health occur. | Yes. Coverage can be higher than the mortgage amount to cover other needs. |
| Customization Can the plan be customized to meet the individual needs? | The plan is often mortgage specific and may not be customized to fit individual financial protection needs. | Yes. Other benefits and features can often be added through optional riders. |
Key Benefits of Mortgage Life Insurance
Individual Life Insurance has several benefits over Creditor Insurance.
Covers everything
Covers everyone
Guranteed coverage
Lower premium
Lender portability
Flexible usage