Getting personally owned life insurance to cover the mortgage debt versus the lender’s coverage is about being in control.
With mortgage life insurance your lender owns the policy. If you find a better mortgage rate at another lending institution you would have to re-qualify for the protection as it cannot be moved to another institution. With mortgage insurance your lender pays off the mortgage automatically at claim. Your beneficiary has no choice in how to use the funds. Mortgage insurance offered by lenders decreases as you pay down your mortgage but the premiums remain the same.
With personally owned insurance, you own the policy, not your lender. You have the freedom to switch your mortgage to another lender without jeopardizing your insurance. Your beneficiaries can choose how to use the funds (ie: payoff the mortgage, provide an income, etc) it’s their choice, not the lenders. The insurance protection remains level.
Another significant benefit is that the premiums on a personally owned plan are most times lower than the lender’s plan.
Please contact either of our Certified Financial Planners listed below and set up a meeting today!!
