When it comes to buying a home or starting a family, insurance coverage in some form is essential. But how do you know which type of insurance plan is right for you?
We can help! Read on to learn about individually owned term life insurance and how it compares to mortgage insurance from a lender when it comes to control, guaranteed premiums, portability, and more.
Control
- Individually Owned Term Life Insurance – You own the coverage and choose who receives the death benefit
- Mortgage Insurance from Lender – The 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
If you have questions about your options or want to further explore individually owned life insurance or mortgage insurance from a lender, reach out to our experienced team of brokers today.