||Know your options|
When buying a home or renewing their mortgage, many people think they are obligated to sign up for their financial institutions' mortgage life insurance.
But it's important to remember that you have options.
Term life insurance offers you affordable premiums and is a great alternative to your financial institution's regular mortgage life insurance.
- Greater control for your beneficiary
Mortgage life insurance bought from a lender will typically pay the death benefit to the lender upon your death. Term life insurance will pay the benefit to the beneficiary you choose (e.g., your spouse). This gives your beneficiary the freedom to choose how best to use the money. For example, some may decide that paying down the mortgage is the highest priority, while others may want to use the money for a more pressing expense that arises at the time.
- Coverage that doesn't shrink with your mortgage
The coverage amount under typical mortgage life insurance declines as your mortgage balance decreases. With Term Life insurance, the amount of your coverage remains the same.
- No need to reapply
With mortgage life insurance, you have to reapply any time you switch lending institutions. But with Term Life insurance, unless you want to increase your coverage or terminate your plan, your policy is automatically renewed up to age 85 with no medical questions asked.
Tip: You don't have to wait until it's time to renew your mortgage to take advantage of the benefits of term life insurance!