When you're approved for a mortgage, your lender will offer to sell you mortgage insurance. It may seem convenient at the time but you have options - options that help protect you and your family, not your lender. Protecting your mortgage with an individually-owned term insurance policy plan offers you and your loved ones better guarantees and greater choice and in most cases at a lower cost.
With Term Insurance With most lender's mortgage ins.
I pay the premiums, so I YES. You own the policy and NO. You're pare of a group policy
would own the policy right? you name your beneficiaries. owned by the lender. Your lender
is the beneficiary.
Is the coverage flexible? YES. You choose from the NO. Your lender will insure you
coverage and the amount of only for the amount of your
coverage you want, regardless of mortgage. You can't alter, renew or
your mortgage balance. You can convert the policy. If you choose to
increase or decrease, renew, or move your mortgage to another
convert your coverage to lender, you can't transfer the policy.
permanent protection Coverage ends when mortgage is
paid off or ends
Circumstances change. If it's YES. Upon death, the benefit NO. Upon death, the benefit goes
better for my beneficiaries to goes directly to your beneficiaries directly to your lender to pay off the
use the proceeds from the policy They decide how to best use mortgage
for something other than paying the money
off the mortgage, will they have
Is the coverage guaranteed? YES. Your premiums and benefits NO. Your premiums and benefits
are guaranteed for the life of the are not guaranteed. The lender
policy. Only you can cancel or can change or cancel the policy at
make changes to your policy any time.
I look after my health, and I YES. The amount you pay for NO. Since your mortgage insurance
don't smoke. Will that make a your coverage is based on your is usually provided through a group
difference in the amount I pay age, health and smoking status plan, you pay the same rate for your
for coverage? coverage as everyone else