Your home is your biggest investment and upon a tragedy it could become your biggest debt. Mortgage protection not only eliminates your family’s mortgage debt, but it also protects them from having to change their way of living at a time when they need comfort and stability the most.
Although mortgage insurance may seem like a good idea, it is offered by both lending institutions and insurance companies; however the contracts that are provided by the lending institutions have numerous of restrictions.
|INDIVIDUAL INSURANCE||LENDING INSTITUTION|
|WHO RECEIVES THE MONEY?|
|Money goes to whomever you choose – perhaps your family – and they decide how money is used. For example: pay down your mortgage, cover outstanding debts, fund education or retirement plans.||Money goes to the lender. The money can only go towards paying down the mortgage.|
|WHAT IS MY COVERAGE LIKE?|
|Choose how long you want your coverage to last. Your coverage stays the same as you pay down the mortgage and your premiums remain the same||You are typically only covered for the mortgage. The amount of coverage decreases as your mortgage is paid down, but the monthly premium payments do not decrease.|
|WHO CONTROLS THE POLICY?|
|You own the policy, giving you control over a variety of options. It’s unrelated to your mortgage, so it doesn’t matter if you move your mortgage to a different lending institution.||The lender typically owns the policy so you can’t move your mortgage insurance to another lending institution. If you find a better mortgage somewhere else, you have to re-qualify medically for mortgage insurance with the new lender. This may increase your premiums.|
|WHAT HAPPENS WHEN I PAY OFF MY MORTGAGE?|
|Your insurance isn’t tied to your mortgage so your coverage stays with you, and you may have options to adapt the coverage to meet evolving needs.||Your insurance coverage ends.|