Why do you need Mortgage Term life insurance?
Because you love your family.
When I bought my house, the mortgage broker we had was a great guy. When we went through the process, we were asked if we wanted mortgage insurance.
The purpose was to pay off our mortgage if something happened to me. Why is this important? Because I love my family.
Let’s face it if something happened to me, and the loss of income my family would face may mean losing our house. So I signed up as it made sense at the time.
Then I started learning more and came to find out there are better options.
This is why I switched to life insurance. Check out this chart.
| Term/permanent life insurance | Mortgage insurance through bank or lender | |
| help to cover your mortgage? | Yes | Yes |
| Cover other expenses apart from mortgage? | yes | no |
| You get to choose who gets the death benefit . | Yes | no, the bank or lender gets the money. |
| Does the coverage change over time | No- you can get a level death benefit. Yes – you could choose a decreasing amount of death benefit (this could lower the cost) | Yes, the coverage decreases as mortgage goes down. |
| How much coverage can you get? | Depends upon health, age, need and is underwritten at issue. (Means if issued guaranteed payout) | Up to what the mortgage is worth. However underwriting happens at death and no guarantee of payout. |
| How can you apply | Talk to me | Check with your bank or mortgage lender. |