Mortgage Insurance

The Bank/Trust Company vs. Your Own Individual Coverage 

When coverage is purchased through the bank;

1) The Bank Policy is owned and controlled by the lender (i.e. bank).

2) The lender is the beneficiary (i.e. bank).

3) The lender controls the distribution of the insurance proceeds.

4) Insurance may be refused or the premiums increased if you change lenders, move homes or increase the size of your loan.

5) Insurance coverage decreases with the balance of your mortgage, although premiums continue to increase as you age.

6) There is minimal flexibility and no special policy options.

7) The individual you deal with is not an insurance expert.

8) At the time of the claim you could incur interest penalties which may not be covered under the policy.

When you purchase an individual policy;

1) Your policy is owned and controlled by you.

2) Your policy can only be cancelled by you.

3) You name the beneficiary.

4) Your designated beneficiary controls the distribution of the insurance proceeds. 
 
5) Policy is fully portable whether you move or change mortgage carriers.

6) Insurance coverage does not decrease and you may choose to continue it after the mortgage is retired.

7) There is maximum flexibility with policy options such as disability waiver of premium.

8) You receive advice and personalized service from a qualified Life Insurance professional