You thought you were finished signing the papers, but suddenly you are handed an insurance application asking you to confirm you are healthy and offering to pay off your mortgage in the case of your death. And if you’re like most people, you sign it and think nothing of the cost as the quote is a low weekly or monthly figure. For most people that’s a mistake, as they don’t realize that a personal mortgage life insurance policy can cost a lot less and offer you a lot more.
But What Does “Mortgage Life Insurance” Mean ?
Mortgage life insurance you purchase through your bank is a group policy between two parties – the bank and an insurance company. You, in any way, are not a party to this contract. That means that the benefits you get as a member of the group – like having your mortgage paid off if you die – end the moment you stop being a member of the group, i.e. you stop paying or if you move your mortgage.
A personal mortgage life insurance policy is yours regardless of which bank or lender your mortgage is with. Mortgage brokers offer mortgage life insurance to clients but often encourage them to look into...