Why You Should Choose Life Insurance Over Mortgage Insurance
Updated: Oct 25, 2020
One of the most common mistakes new homebuyers make is agreeing to standard Mortgage insurance without determining if that is truly the best fit. In almost every case, life insurance is the better choice for protection.
There are two main differences between Mortgage insurance and life insurance.
Firstly, mortgage insurance only covers the balance of your mortgage. As the balance of your mortgage declines, the coverage declines, but you are still required to pay the same premium. With life insurance, the payout does not decrease as the mortgage term decreases, it remains constant.
The second difference is who the insurance is paid to in the case a payout is triggered. In the case of mortgage insurance, the bank or financial institution receives the payout. In the case of life insurance, you will receive the payout. This is a much greater benefit, as you and your family can use the funds in any way you you need. With life insurance, you have the control.
Great White wealth Management is a licensed insurance agent and can provide you with expert advice to ensure you choose the insurance that is right for you and your family. Book an appointment with us now on the contact us page.