Mortgage Life Insurance Comparison - TIP #2

When it comes to Mortgage Life Insurance there is a massive difference between what your policy looks like from your lender and what your policy looks like if you go direct to an insurance company.

 

Before we start, make sure to read our first article about decreasing your Mortgage Insurance coverage amount.

 

But let’s compare TIP #2 – where the proceeds go when you purchase coverage through the bank, your benefits are paid to the bank at the time a claim is filed. This means you no longer have a mortgage to pay for. However, when you consider purchasing coverage directly through an insurance company you not only get level coverage, but the benefits are paid directly to your loved ones.

 

 

Well, let’s assume you purchased a $500,000 mortgage and at the same time purchase $500,000 of life insurance direct from an insurance company. And you were able to pay your $500,000 mortgage to $400,000. But this is when a tragedy happened and your spouse passed away. You would receive the full $500,000 of coverage. Which means you could choose to pay off your mortgage and still have $100,000 leftover. And the best part is…